Comfort Systems USA
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Comfort Systems USA missed estimates on revenues and whiffed on earnings per share.
Compared to the prior-year quarter, revenue increased slightly and GAAP earnings per share contracted significantly.
Margins shrank across the board.
Comfort Systems USA logged revenue of $317.7 million. The analysts polled by S&P Capital IQ predicted revenue of $338.9 million on the same basis. GAAP reported sales were 1.0% higher than the prior-year quarter's $314.6 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 $0.07. The earnings estimates compiled by S&P Capital IQ predicted $0.11 per share on the same basis. GAAP EPS of $0.04 for Q4 were 73% lower than the prior-year quarter's $0.15 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 15.9%, 220 basis points worse than the prior-year quarter. Operating margin was 1.4%, 130 basis points worse than the prior-year quarter. Net margin was 0.5%, 130 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $311.3 million. On the bottom line, the average EPS estimate is -$0.02.
Next year's average estimate for revenue is $1.38 billion. The average EPS estimate is $0.41.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 120 members out of 127 rating the stock outperform, and seven members rating it underperform. Among 38 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 37 give Comfort Systems USA a green thumbs-up, and one gives it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Comfort Systems USA is hold, with an average price target of $11.83.
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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.