The 10-second takeaway
For the quarter ended Dec. 31 (Q4), ICG Group missed estimates on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly, and GAAP earnings per share grew significantly.
Gross margins dropped, operating margins shrank, and net margins improved.
ICG Group reported revenue of $35.1 million. The two analysts polled by S&P Capital IQ expected to see sales of $38.0 million on the same basis. GAAP reported sales were 9.2% higher than the prior-year quarter's $33.1 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 -$0.08. The two earnings estimates compiled by S&P Capital IQ forecast -$0.06 per share on the same basis. GAAP EPS of $0.49 for Q3 were much higher than the prior-year quarter's $0.01 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 40.0%, 360 basis points worse than the prior-year quarter. Operating margin was 0.3%, 40 basis points worse than the prior-year quarter. Net margin was 49.5%, 4,870 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $34.8 million. On the bottom line, the average EPS estimate is $0.00.
Next year's average estimate for revenue is $135.2 million. The average EPS estimate is $0.26.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 58 members rating the stock outperform and 12 members rating it underperform. Among 18 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 16 give ICG Group a green thumbs-up, and two give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on ICG Group is buy, with an average price target of $13.25.
Over the decades, small-cap stocks like ICG Group 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 ICG Group to My Watchlist.
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.
More from The Motley Fool
Why Snap, Greenhill, and Actua Jumped Today
These stocks helped lead the market higher. Find out why.
Why Shares of Actua Corp. Are Rocketing Higher Today
The SaaS company is throwing in the towel, selling off its major businesses, winding down operations, and distributing the proceeds to shareholders.
Why ICG Group Inc. Shares Popped
Is this meaningful? Or just another movement?