The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Tredegar beat expectations on revenue and whiffed on earnings per share.
Compared to the prior-year quarter, revenue improved and GAAP earnings per share dropped to zero.
Margins dropped across the board.
Tredegar tallied revenue of $203.8 million. The two analysts polled by S&P Capital IQ anticipated a top line of $193.8 million on the same basis. GAAP reported sales were 11% higher than the prior-year quarter's $182.9 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 $0.21. The three earnings estimates compiled by S&P Capital IQ anticipated $0.27 per share on the same basis. GAAP EPS dropped to zero from the prior-year quarter's $0.23.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 16.2%, 180 basis points worse than the prior-year quarter. Operating margin was 6.2%, 90 basis points worse than the prior-year quarter. Net margin was -0.1%, 410 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $229.7 million. On the bottom line, the average EPS estimate is $0.30.
Next year's average estimate for revenue is $930.0 million. The average EPS estimate is $1.38.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 45 members out of 51 rating the stock outperform, and six members rating it underperform. Among 13 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 11 give Tredegar 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 Tredegar is outperform, with an average price target of $21.00.
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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.