The 10-second takeaway
For the quarter ended Dec. 30 (Q4), Exponent beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded and GAAP earnings per share improved significantly.
Margins expanded across the board.
Exponent booked revenue of $60.5 million. The five analysts polled by S&P Capital IQ anticipated sales of $58.0 million. Sales were 8.5% higher than the prior-year quarter's $54.6 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
EPS came in at $0.54. The four earnings estimates compiled by S&P Capital IQ predicted $0.43 per share. GAAP EPS of $0.54 for Q4 were 32% higher than the prior-year quarter's $0.41 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 89.1%, 5,940 basis points better than the prior-year quarter. Operating margin was 16.5%, 150 basis points better than the prior-year quarter. Net margin was 11.4%, 150 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $66.7 million. On the bottom line, the average EPS estimate is $0.53.
Next year's average estimate for revenue is $258.9 million. The average EPS estimate is $2.22.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 227 members out of 232 rating the stock outperform, and five members rating it underperform. Among 76 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 75 give Exponent a green thumbs-up, and one give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Exponent is outperform, with an average price target of $47.00.
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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.