The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Young Innovations beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share improved.
Gross margins contracted, operating margins improved, and net margins grew.
Young Innovations booked revenue of $26.7 million. The one analyst polled by S&P Capital IQ predicted a top line of $26.4 million. Sales were 3.2% higher than the prior-year quarter's $25.9 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
EPS came in at $0.54. The one earnings estimate compiled by S&P Capital IQ predicted $0.50 per share. GAAP EPS of $0.54 for Q4 were 15% higher than the prior-year quarter's $0.47 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 54.3%, 50 basis points worse than the prior-year quarter. Operating margin was 23.0%, 40 basis points better than the prior-year quarter. Net margin was 16.2%, 170 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $26.7 million. On the bottom line, the average EPS estimate is $0.50.
Next year's average estimate for revenue is $109.1 million. The average EPS estimate is $2.11.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 21 members out of 27 rating the stock outperform, and six members rating it underperform. Among 10 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), nine give Young Innovations a green thumbs-up, and one gives it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Young Innovations is buy, with an average price target of $36.
Can your retirement portfolio provide you with enough income to last? You'll need more than Young Innovations. Learn about crafting a smarter retirement plan in "The Shocking Can't-Miss Truth About Your Retirement." Click here for instant access to this free report.
- Add Young Innovations 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
Are Shorts Watching This Number at Young Innovations?
Look here for a clue.
This Metric Suggests You're Right to Own Young Innovations.
Don't just ask, "How much inventory?" Ask, "What kind?"
Will Young Innovations Earn or Burn?
Keep your eye on margins.