The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Minerals Technologies missed slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased, and GAAP earnings per share expanded significantly.
Margins increased across the board.
Minerals Technologies recorded revenue of $262.2 million. The five analysts polled by S&P Capital IQ predicted a top line of $266.9 million. Sales were 3.5% higher than the prior-year quarter's $249.8 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $0.95. The four earnings estimates compiled by S&P Capital IQ averaged $0.90 per share on the same basis. GAAP EPS of $1.11 for Q3 were 29% higher than the prior-year quarter's $0.86 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 20.9%, 10 basis points better than the prior-year quarter. Operating margin was 10.0%, 60 basis points better than the prior-year quarter. Net margin was 7.8%, 130 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $250.9 million. On the bottom line, the average EPS estimate is $0.89.
Next year's average estimate for revenue is $1.05 billion. The average EPS estimate is $3.61.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 36 members rating the stock outperform, and three members rating it underperform. Among 11 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 11 give Minerals Technologies a green thumbs-up, and give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Minerals Technologies is outperform, with an average price target of $74.33.
Over the decades, small-cap stocks, like Minerals Technologies have provided market-beating returns, provided they're value priced and have solid businesses. Read about a pair of companies with a lock on their markets in "Too Small to Fail: Two Small Caps the Government Won't Let Go Broke." Click here for instant access to this free report.
- Add Minerals Technologies to My Watchlist.
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.