The 10-second takeaway
For the quarter ended Jan. 31 (Q4), Cascade missed slightly on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue expanded, and GAAP earnings per share grew significantly.
Gross margins shrank, operating margins expanded, and net margins improved.
Cascade reported revenue of $125.9 million. The four analysts polled by S&P Capital IQ expected revenue of $128.5 million on the same basis. GAAP reported sales were 14% higher than the prior-year quarter's $110.3 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 $0.98. The two earnings estimates compiled by S&P Capital IQ anticipated $1.05 per share on the same basis. GAAP EPS of $1.16 for Q4 were 252% higher than the prior-year quarter's $0.33 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 28.9%, 180 basis points worse than the prior-year quarter. Operating margin was 12.4%, 40 basis points better than the prior-year quarter. Net margin was 10.5%, 710 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $142.6 million. On the bottom line, the average EPS estimate is $1.52.
Next year's average estimate for revenue is $571.4 million. The average EPS estimate is $5.45.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 159 members rating the stock outperform and 11 members rating it underperform. Among 59 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 57 give Cascade a green thumbs-up, and two give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Cascade is outperform, with an average price target of $60.
Over the decades, small-cap stocks like Cascade 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 Cascade 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. 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.
More from The Motley Fool
Has Cascade Made You Any Real Money?
All cash flow is not created equal.
Are You Missing Something Easy at Cascade?
Keep your eye on margins.
Is The Inventory Story at Cascade Making You Look Clever?
Don't just ask, "How much inventory?" Ask, "What kind?"