The 10-second takeaway
For the quarter ended Dec. 31 (Q4), IRIS International met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased, and GAAP earnings per share improved significantly.
Margins improved across the board.
IRIS International notched revenue of $33.1 million. The four analysts polled by S&P Capital IQ foresaw sales of $32.8 million on the same basis. GAAP reported sales were 13% higher than the prior-year quarter's $29.3 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 $0.16. The four earnings estimates compiled by S&P Capital IQ predicted $0.14 per share. GAAP EPS of $0.16 for Q4 were 433% higher than the prior-year quarter's $0.03 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 52.3%, 460 basis points better than the prior-year quarter. Operating margin was 11.2%, 920 basis points better than the prior-year quarter. Net margin was 8.7%, 720 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $30.4 million. On the bottom line, the average EPS estimate is $0.05.
Next year's average estimate for revenue is $130.3 million. The average EPS estimate is $0.33.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 185 members rating the stock outperform and 11 members rating it underperform. Among 39 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 38 give IRIS International 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 IRIS International is buy, with an average price target of $11.30.
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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.