National Financial Partners
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), National Financial Partners met expectations on revenue and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded slightly and GAAP earnings per share shrank significantly.
Gross margins grew, operating margins increased, and net margins shrank.
National Financial Partners chalked up revenue of $289.2 million. The one analyst polled by S&P Capital IQ expected net sales of $288.6 million. Sales were 1.7% higher than the prior-year quarter's $284.3 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $0.65. The six earnings estimates compiled by S&P Capital IQ averaged $0.62 per share on the same basis. GAAP EPS of $0.27 for Q4 were 21% lower than the prior-year quarter's $0.34 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 38.2%, 1,310 basis points better than the prior-year quarter. Operating margin was 9.9%, 120 basis points better than the prior-year quarter. Net margin was 3.9%, 150 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $248.4 million. On the bottom line, the average EPS estimate is $0.56.
Next year's average estimate for revenue is $1.09 billion. The average EPS estimate is $2.32.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 86 members out of 100 rating the stock outperform, and 14 members rating it underperform. Among 46 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 43 give National Financial Partners 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 National Financial Partners is hold, with an average price target of $15.50.
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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.