The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Gorman-Rupp beat slightly on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue increased and GAAP earnings per share dropped significantly.
Margins dropped across the board.
Gorman-Rupp recorded revenue of $93.0 million. The four analysts polled by S&P Capital IQ hoped for a top line of $92.0 million. GAAP sales were 9.9% higher than the prior-year quarter's $84.7 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 $0.34. The four earnings estimates compiled by S&P Capital IQ predicted $0.37 per share on the same basis. GAAP EPS of $0.24 for Q4 were 48% lower than the prior-year quarter's $0.46 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 21.2%, 830 basis points worse than the prior-year quarter. Operating margin was 7.9%, 880 basis points worse than the prior-year quarter. Net margin was 5.5%, 590 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $91.6 million. On the bottom line, the average EPS estimate is $0.33.
Next year's average estimate for revenue is $384.9 million. The average EPS estimate is $1.60.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 296 members out of 308 rating the stock outperform, and 12 members rating it underperform. Among 78 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 76 give Gorman-Rupp a green thumbs-up, and two give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Gorman-Rupp is buy, with an average price target of $37.67.
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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.