The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Highwoods Properties beat expectations on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share increased significantly.
Gross margins contracted, operating margins dropped, and net margins increased.
Highwoods Properties reported revenue of $122.1 million. The 10 analysts polled by S&P Capital IQ looked for net sales of $118.4 million. Sales were 4.9% higher than the prior-year quarter's $116.1 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $0.06. The three earnings estimates compiled by S&P Capital IQ averaged $0.13 per share on the same basis. GAAP EPS of $0.16 for Q3 were 23% 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 61.7%, 400 basis points worse than the prior-year quarter. Operating margin was 23.8%, 490 basis points worse than the prior-year quarter. Net margin was 9.7%, 70 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $126.3 million. On the bottom line, the average EPS estimate is $0.21.
Next year's average estimate for revenue is $485.2 million. The average EPS estimate is $0.60.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Highwoods Properties is outperform, with an average price target of $33.60.
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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.