The 10-second takeaway
For the quarter ended Jan. 31 (Q4), Mitcham Industries crushed expectations on revenue and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share grew significantly.
Margins expanded across the board.
Mitcham Industries notched revenue of $37.0 million. The four analysts polled by S&P Capital IQ predicted revenue of $30.3 million on the same basis. GAAP reported sales were 88% higher than the prior-year quarter's $19.7 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 $0.77. The four earnings estimates compiled by S&P Capital IQ predicted $0.57 per share. GAAP EPS of $0.77 for Q4 were 353% higher than the prior-year quarter's $0.17 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 57.4%, 1,150 basis points better than the prior-year quarter. Operating margin was 39.3%, 2,260 basis points better than the prior-year quarter. Net margin was 27.4%, 1,850 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $38.3 million. On the bottom line, the average EPS estimate is $0.83.
Next year's average estimate for revenue is $144.4 million. The average EPS estimate is $2.65.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 316 members out of 322 rating the stock outperform, and six members rating it underperform. Among 72 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), all 72 give Mitcham Industries a green thumbs-up.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Mitcham Industries is outperform, with an average price target of $29.67.
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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.
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