The 10-second takeaway
For the quarter ended March 31 (Q1), Gardner Denver beat expectations on revenue and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased and GAAP earnings per share dropped.
Margins dropped across the board.
Gardner Denver logged revenue of $604.4 million. The seven analysts polled by S&P Capital IQ expected to see net sales of $582.0 million on the same basis. GAAP reported sales were 14% higher than the prior-year quarter's $531.9 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 $1.40. The seven earnings estimates compiled by S&P Capital IQ predicted $1.36 per share on the same basis. GAAP EPS of $1.08 for Q1 were 4.4% lower than the prior-year quarter's $1.13 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 33.5%, 120 basis points worse than the prior-year quarter. Operating margin was 13.2%, 350 basis points worse than the prior-year quarter. Net margin was 9.1%, 210 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $633.8 million. On the bottom line, the average EPS estimate is $1.50.
Next year's average estimate for revenue is $2.49 billion. The average EPS estimate is $5.92.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 423 members out of 435 rating the stock outperform, and 12 members rating it underperform. Among 95 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), all 95 give Gardner Denver a green thumbs-up.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Gardner Denver is outperform, with an average price target of $88.00.
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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.