The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Dynamic Materials beat expectations on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly, and GAAP earnings per share increased significantly.
Margins expanded across the board.
Dynamic Materials chalked up revenue of $54.3 million. The four analysts polled by S&P Capital IQ looked for a top line of $49.4 million on the same basis. GAAP reported sales were 21% higher than the prior-year quarter's $44.8 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.27. The five earnings estimates compiled by S&P Capital IQ forecast $0.20 per share. GAAP EPS of $0.27 for Q4 were 170% higher than the prior-year quarter's $0.10 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 27.3%, 530 basis points better than the prior-year quarter. Operating margin was 9.5%, 610 basis points better than the prior-year quarter. Net margin was 6.6%, 370 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $52.5 million. On the bottom line, the average EPS estimate is $0.24.
Next year's average estimate for revenue is $228.2 million. The average EPS estimate is $1.19.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Dynamic Materials is outperform, with an average price target of $25.67.
Over the decades, small-cap stocks, like Dynamic Materials 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 Dynamic Materials to My Watchlist.