The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Albany International whiffed on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped significantly and GAAP earnings per share dropped to a loss.
Gross margins expanded, operating margins contracted, net margins contracted.
Albany International booked revenue of $202.6 million. The four analysts polled by S&P Capital IQ expected a top line of $227.5 million. GAAP sales were 17% lower than the prior-year quarter's $244.6 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.40. The four earnings estimates compiled by S&P Capital IQ predicted $0.47 per share on the same basis. GAAP EPS were -$0.23 for Q4 versus $0.65 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 39.5%, 340 basis points better than the prior-year quarter. Operating margin was 8.6%, 80 basis points worse than the prior-year quarter. Net margin was -3.6%, 1,200 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $227.3 million. On the bottom line, the average EPS estimate is $0.40.
Next year's average estimate for revenue is $913.3 million. The average EPS estimate is $1.75.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 22 members out of 45 rating the stock outperform, and 23 members rating it underperform. Among 15 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 12 give Albany International 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 Albany International is outperform, with an average price target of $28.00.
Over the decades, small-cap stocks, like Albany International 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 Albany International 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.