Diamond Hill Investment Group
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Diamond Hill Investment Group beat expectations on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted slightly and GAAP earnings per share contracted.
Gross margins dropped, operating margins improved, and net margins increased.
Diamond Hill Investment Group reported revenue of $15.2 million. The one analyst polled by S&P Capital IQ looked for a top line of $13.1 million on the same basis. GAAP reported sales were 2.1% lower than the prior-year quarter's $15.5 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 $1.49. The one earnings estimate compiled by S&P Capital IQ averaged $0.88 per share. GAAP EPS of $1.49 for Q4 were 6.3% lower than the prior-year quarter's $1.59 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 41.6%, 660 basis points worse than the prior-year quarter. Operating margin was 41.6%, 140 basis points better than the prior-year quarter. Net margin was 29.3%, 50 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $12.4 million. On the bottom line, the average EPS estimate is $0.91.
Next year's average estimate for revenue is $48.4 million. The average EPS estimate is $3.71.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 179 members out of 187 rating the stock outperform, and eight members rating it underperform. Among 69 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 67 give Diamond Hill Investment Group a green thumbs-up, and two give it a red thumbs-down.
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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.