The 10-second takeaway
For the quarter ended Dec. 31 (Q4), GP Strategies 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 dropped, operating margins increased, and net margins increased.
GP Strategies logged revenue of $93.9 million. The five analysts polled by S&P Capital IQ predicted revenue of $90.9 million on the same basis. GAAP reported sales were 33% higher than the prior-year quarter's $70.8 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 $0.27. The six earnings estimates compiled by S&P Capital IQ predicted $0.24 per share on the same basis. GAAP EPS of $0.31 for Q4 were 35% higher than the prior-year quarter's $0.23 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 17.3%, 40 basis points worse than the prior-year quarter. Operating margin was 8.8%, 40 basis points better than the prior-year quarter. Net margin was 6.3%, 30 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $89 million. On the bottom line, the average EPS estimate is $0.22.
Next year's average estimate for revenue is $386.9 million. The average EPS estimate is $1.01.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on GP Strategies is buy, with an average price target of $17.30.
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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.