The 10-second takeaway
For the quarter ended Dec. 31 (Q2), Standex International met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share contracted to a loss.
Gross margins dropped, operating margins grew, net margins shrank.
Standex International chalked up revenue of $174.7 million. The two analysts polled by S&P Capital IQ predicted revenue of $173.5 million on the same basis. GAAP reported sales were 9.0% higher than the prior-year quarter's $142.1 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 $0.94. The two earnings estimates compiled by S&P Capital IQ predicted $0.88 per share on the same basis. GAAP EPS were -$0.32 for Q1 compared to $0.71 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 32.5%, 120 basis points worse than the prior-year quarter. Operating margin was 9.7%, 20 basis points better than the prior-year quarter. Net margin was -2.7%, 900 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $170.3 million. On the bottom line, the average EPS estimate is $0.80.
Next year's average estimate for revenue is $686.1 million. The average EPS estimate is $3.21.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 48 members out of 52 rating the stock outperform, and four members rating it underperform. Among 18 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 17 give Standex International a green thumbs-up, and one give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Standex International is buy, with an average price target of $49.00.
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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.