The 10-second takeaway
For the quarter ended Dec. 31 (Q4), CARBO Ceramics whiffed on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue improved significantly, and GAAP earnings per share expanded significantly.
Margins improved across the board.
CARBO Ceramics booked revenue of $158.1 million. The five analysts polled by S&P Capital IQ expected a top line of $176.7 million. Sales were 32% higher than the prior-year quarter's $119.6 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $1.43. The eight earnings estimates compiled by S&P Capital IQ averaged $1.71 per share on the same basis. GAAP EPS of $1.43 for Q4 were 59% higher than the prior-year quarter's $0.90 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 41.0%, 220 basis points better than the prior-year quarter. Operating margin was 31.1%, 410 basis points better than the prior-year quarter. Net margin was 20.9%, 350 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $163.8 million. On the bottom line, the average EPS estimate is $1.41.
Next year's average estimate for revenue is $735.4 million. The average EPS estimate is $6.60.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 348 members out of 376 rating the stock outperform, and 28 members rating it underperform. Among 118 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 107 give CARBO Ceramics a green thumbs-up, and 11 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on CARBO Ceramics is outperform, with an average price target of $183.90.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.