The 10-second takeaway
For the quarter ended Dec. 31 (Q4), AAON whiffed on revenue and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue dropped and GAAP earnings per share contracted significantly.
Margins dropped across the board.
AAON notched revenue of $63.4 million. The two analysts polled by S&P Capital IQ predicted revenue of $72.1 million on the same basis. GAAP reported sales were 3.7% lower than the prior-year quarter's $65.8 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 $0.04. The two earnings estimates compiled by S&P Capital IQ anticipated $0.21 per share on the same basis. GAAP EPS of $0.03 for Q4 were 88% lower 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 13.6%, 800 basis points worse than the prior-year quarter. Operating margin was 4.8%, 770 basis points worse than the prior-year quarter. Net margin was 1.4%, 740 basis points worse than the prior-year quarter.
On the bottom line, the average EPS estimate is $0.20.
Next year's average estimate for revenue is $297.4 million. The average EPS estimate is $0.84.
The stock has a five-star rating (out of five) at Motley Fool CAPS. Among 91 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), all 91 give AAON a green thumbs-up.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on AAON is hold, 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.