The 10-second takeaway
For the quarter ended Dec. 31 (Q4), LMI Aerospace missed estimates on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue improved significantly and GAAP earnings per share increased significantly.
Margins improved across the board.
LMI Aerospace recorded revenue of $65.0 million. The four analysts polled by S&P Capital IQ foresaw revenue of $67.0 million on the same basis. GAAP reported sales were 19% higher than the prior-year quarter's $54.7 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 $0.35. The three earnings estimates compiled by S&P Capital IQ predicted $0.41 per share. GAAP EPS of $0.35 for Q4 were 35% higher than the prior-year quarter's $0.26 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 22.3%, 50 basis points better than the prior-year quarter. Operating margin was 8.7%, 230 basis points better than the prior-year quarter. Net margin was 6.3%, 70 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $67.5 million. On the bottom line, the average EPS estimate is $0.40.
Next year's average estimate for revenue is $288.6 million. The average EPS estimate is $1.87.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 125 members out of 131 rating the stock outperform, and six members rating it underperform. Among 27 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 26 give LMI Aerospace 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 LMI Aerospace is buy, with an average price target of $27.50.
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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.