The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Post Properties beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased, and GAAP earnings per share increased.
Gross margins grew, operating margins increased, and net margins shrank.
Post Properties booked revenue of $77.7 million. The 10 analysts polled by S&P Capital IQ expected to see sales of $76.6 million. Sales were 7.3% higher than the prior-year quarter's $72.3 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $0.19. The one earnings estimate compiled by S&P Capital IQ anticipated $0.11 per share on the same basis. GAAP EPS of $0.06 for Q4 were 20% higher than the prior-year quarter's $0.05 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 58.7%, 230 basis points better than the prior-year quarter. Operating margin was 29.4%, 580 basis points better than the prior-year quarter. Net margin was 5.0%, 100 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $77.5 million. On the bottom line, the average EPS estimate is $0.17.
Next year's average estimate for revenue is $326.2 million. The average EPS estimate is $0.55.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 38 members out of 90 rating the stock outperform, and 52 members rating it underperform. Among 32 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 14 give Post Properties a green thumbs-up, and 18 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Post Properties is hold, with an average price target of $43.79.
Over the decades, small-cap stocks, like Post Properties 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 Post Properties 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.