The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Encore Wire met expectations on revenues and beat expectations on earnings per share.
Compared with the prior-year quarter, revenue dropped and GAAP earnings per share increased significantly.
Margins increased across the board.
Encore Wire logged revenue of $248.3 million. The three analysts polled by S&P Capital IQ looked for sales of $250.2 million on the same basis. GAAP reported sales were 3.1% lower than the prior-year quarter's $256.1 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 $0.69. The three earnings estimates compiled by S&P Capital IQ averaged $0.24 per share. GAAP EPS of $0.69 for Q4 were 245% higher than the prior-year quarter's $0.20 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 15.6%, 700 basis points better than the prior-year quarter. Operating margin was 9.9%, 730 basis points better than the prior-year quarter. Net margin was 6.6%, 480 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $280.6 million. On the bottom line, the average EPS estimate is $0.36.
Next year's average estimate for revenue is $1.19 billion. The average EPS estimate is $1.75.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 330 members out of 356 rating the stock outperform, and 26 members rating it underperform. Among 104 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 99 give Encore Wire a green thumbs-up, and five give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Encore Wire is outperform, with an average price target of $29.17.
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