The 10-second takeaway
For the quarter ended Dec. 31 (Q3), Modine Manufacturing missed estimates on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded and GAAP earnings per share increased significantly.
Gross margins were steady, operating margins increased, net margins grew.
Modine Manufacturing reported revenue of $373.3 million. The four analysts polled by S&P Capital IQ anticipated revenue of $409.7 million. Sales were 3.7% higher than the prior-year quarter's $360.0 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $0.17. The four earnings estimates compiled by S&P Capital IQ anticipated $0.28 per share on the same basis. GAAP EPS of $0.18 for Q3 were 38% higher than the prior-year quarter's $0.13 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 16.0%, about the same as the prior-year quarter. Operating margin was 4.3%, 110 basis points better than the prior-year quarter. Net margin was 2.2%, 50 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $445.7 million. On the bottom line, the average EPS estimate is $0.33.
Next year's average estimate for revenue is $1.66 billion. The average EPS estimate is $0.91.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 71 members rating the stock outperform and 17 members rating it underperform. Among 30 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 25 give Modine Manufacturing a green thumbs-up, and five give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Modine Manufacturing is outperform, with an average price target of $17.50.
Over the decades, small-cap stocks, like Modine Manufacturing, 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 Modine Manufacturing 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.
More from The Motley Fool
3 Stocks on Our Radar
Why we’re interested in Modine Manufacturing, Starbucks, and Celgene.
Why Shares of Modine Manufacturing Co. Popped Today
Is this meaningful or just another movement?
Why Modine Manufacturing Company Shares Popped
Is this meaningful? Or just another movement?