The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Lufkin Industries beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly, and GAAP earnings per share improved significantly.
Gross margins shrank, operating margins grew, and net margins shrank.
Lufkin Industries reported revenue of $279.3 million. The two analysts polled by S&P Capital IQ hoped for sales of $255.1 million. GAAP sales were 44% higher than the prior-year quarter's $193.5 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 $0.80. The five earnings estimates compiled by S&P Capital IQ forecast $0.78 per share on the same basis. GAAP EPS of $0.67 for Q4 were 40% higher than the prior-year quarter's $0.48 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 24.9%, 50 basis points worse than the prior-year quarter. Operating margin was 14.1%, 300 basis points better than the prior-year quarter. Net margin was 7.4%, 10 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $285.2 million. On the bottom line, the average EPS estimate is $0.92.
Next year's average estimate for revenue is $1.24 billion. The average EPS estimate is $4.31.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 608 members rating the stock outperform and 24 members rating it underperform. Among 232 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 229 give Lufkin Industries 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 Lufkin Industries is outperform, with an average price target of $79.
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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.