The 10-second takeaway
For the quarter ended Dec. 31 (Q4), HFF beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly and GAAP earnings per share improved significantly.
Margins improved across the board.
HFF logged revenue of $75.9 million. The two analysts polled by S&P Capital IQ looked for net sales of $74.5 million on the same basis. GAAP reported sales were 55% higher than the prior-year quarter's $48.9 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 $0.35. The two earnings estimates compiled by S&P Capital IQ forecast $0.31 per share. GAAP EPS of $0.35 for Q4 were 192% higher than the prior-year quarter's $0.12 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 44.4%, 1,650 basis points better than the prior-year quarter. Operating margin was 24.2%, 1,220 basis points better than the prior-year quarter. Net margin was 16.7%, 800 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $44.6 million. On the bottom line, the average EPS estimate is $0.12.
Next year's average estimate for revenue is $292.9 million. The average EPS estimate is $1.13.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 22 members out of 49 rating the stock outperform, and 27 members rating it underperform. Among 15 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), three give HFF a green thumbs-up, and 12 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on HFF is buy, with an average price target of $17.
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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.