National Presto Industries
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), National Presto Industries whiffed on revenues and earnings per share.
Compared to the prior-year quarter, revenue shrank significantly, and GAAP earnings per share dropped significantly.
Margins dropped across the board.
National Presto Industries booked revenue of $119 million. The one analyst polled by S&P Capital IQ predicted revenue of $136.9 million on the same basis. GAAP reported sales were 16% lower than the prior-year quarter's $142.0 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 $1.95. The one earnings estimate compiled by S&P Capital IQ forecast $2.78 per share. GAAP EPS of $1.95 for Q4 were 40% lower than the prior-year quarter's $3.23 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 23.1%, 370 basis points worse than the prior-year quarter. Operating margin was 17.8%, 590 basis points worse than the prior-year quarter. Net margin was 11.3%, 430 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $112.6 million. On the bottom line, the average EPS estimate is $1.68.
Next year's average estimate for revenue is $494.5 million. The average EPS estimate is $8.73.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 607 members rating the stock outperform and nine members rating it underperform. Among 205 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 202 give National Presto Industries a green thumbs-up, and three give it a red thumbs-down.
Over the decades, small-cap stocks like National Presto Industries 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 National Presto Industries 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 National Presto Industries. 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.