The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Park-Ohio Holdings missed estimates on revenue and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue increased and GAAP earnings per share expanded significantly.
Gross margin dropped, operating margin increased, and net margin improved.
Park-Ohio Holdings recorded revenue of $234.6 million. The one analyst polled by S&P Capital IQ wanted to see revenue of $245.4 million on the same basis. GAAP reported sales were 6.4% higher than the prior-year quarter's $220.5 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 $0.64. The one earnings estimate compiled by S&P Capital IQ predicted $0.50 per share on the same basis. GAAP EPS of $1.58 for Q4 were 427% higher than the prior-year quarter's $0.30 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 16.4%, 10 basis points worse than the prior-year quarter. Operating margin was 5.8%, 90 basis points better than the prior-year quarter. Net margin was 8.1%, 650 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $243.1 million. On the bottom line, the average EPS estimate is $0.52.
Next year's average estimate for revenue is $1.03 billion. The average EPS estimate is $2.85.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 133 members out of 140 rating the stock outperform, and seven members rating it underperform. Among 39 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 38 give Park-Ohio Holdings 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 Park-Ohio Holdings is buy, with an average price target of $24.00.
Over the decades, small-cap stocks like Park-Ohio Holdings 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 Park-Ohio Holdings 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.