Houston Wire & Cable
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Houston Wire & Cable whiffed on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue dropped and GAAP earnings per share didn't change.
Margins increased across the board.
Houston Wire & Cable tallied revenue of $87.5 million. The four analysts polled by S&P Capital IQ expected a top line of $101.8 million on the same basis. GAAP reported sales were 6.5% lower than the prior-year quarter's $93.5 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 $0.17. The four earnings estimates compiled by S&P Capital IQ anticipated $0.24 per share. GAAP EPS of $0.17 were the same as the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 22.8%, 170 basis points better than the prior-year quarter. Operating margin was 6.1%, 30 basis points better than the prior-year quarter. Net margin was 3.5%, 40 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $93.9 million. On the bottom line, the average EPS estimate is $0.27.
Next year's average estimate for revenue is $386.5 million. The average EPS estimate is $1.13.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 465 members out of 484 rating the stock outperform, and 19 members rating it underperform. Among 144 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 143 give Houston Wire & Cable 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 Houston Wire & Cable is buy, with an average price target of $17.00.
Over the decades, small-cap stocks, like Houston Wire & Cable have provided market-beating returns, provided they're value priced and have solid businesses. Read about a pair of companies with a lock on their markets in "Too Small to Fail: Two Small Caps the Government Won't Let Go Broke." Click here for instant access to this free report.
- Add Houston Wire & Cable to My Watchlist.
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. The Motley Fool owns shares of Houston Wire & Cable. 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.