The 10-second takeaway
For the quarter ended Dec. 31 (Q4), GAMCO Investors missed estimates on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted and GAAP earnings per share shrank significantly.
Gross margins improved, operating margins grew, and net margins dropped.
GAMCO Investors reported revenue of $85.0 million. The one analyst polled by S&P Capital IQ looked for revenue of $91.0 million. Sales were 11% lower than the prior-year quarter's $95.4 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
EPS came in at $0.89. The two earnings estimates compiled by S&P Capital IQ predicted $0.84 per share. GAAP EPS of $0.89 for Q4 were 15% lower than the prior-year quarter's $1.05 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 61.0%, 820 basis points better than the prior-year quarter. Operating margin was 36.9%, 590 basis points better than the prior-year quarter. Net margin was 27.9%, 30 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $80.2 million. On the bottom line, the average EPS estimate is $0.64.
Next year's average estimate for revenue is $356.8 million. The average EPS estimate is $3.24.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 34 members out of 48 rating the stock outperform, and 14 members rating it underperform. Among nine CAPS All-Star picks (recommendations by the highest-ranked CAPS members), six give GAMCO Investors a green thumbs-up, and three give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on GAMCO Investors is outperform, with an average price target of $47.
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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.