The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Douglas Dynamics crushed expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly and GAAP earnings per share expanded significantly.
Gross margins dropped, operating margins improved, net margins dropped.
Douglas Dynamics reported revenue of $60.3 million. The five analysts polled by S&P Capital IQ foresaw revenue of $47.9 million on the same basis. GAAP reported sales were 24% higher than the prior-year quarter's $48.5 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 $0.29. The five earnings estimates compiled by S&P Capital IQ predicted $0.21 per share on the same basis. GAAP EPS of $0.28 for Q4 were 17% higher than the prior-year quarter's $0.24 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 33.0%, 30 basis points worse than the prior-year quarter. Operating margin was 18.9%, 370 basis points better than the prior-year quarter. Net margin was 10.2%, 30 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $17.0 million. On the bottom line, the average EPS estimate is -$0.13.
Next year's average estimate for revenue is $181.7 million. The average EPS estimate is $0.66.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 24 members out of 27 rating the stock outperform, and three members rating it underperform. Among three CAPS All-Star picks (recommendations by the highest-ranked CAPS members), three give Douglas Dynamics a green thumbs-up.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Douglas Dynamics is outperform, with an average price target of $17.00.
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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.