The 10-second takeaway
For the quarter ended March 31 (Q1), Myers Industries missed estimates on revenue and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew slightly and GAAP earnings per share increased significantly.
Margins increased across the board.
Myers Industries recorded revenue of $198.8 million. The three analysts polled by S&P Capital IQ expected a top line of $203.4 million on the same basis. GAAP reported sales were 2.8% higher than the prior-year quarter's $193.4 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 $0.30. The four earnings estimates compiled by S&P Capital IQ anticipated $0.23 per share on the same basis. GAAP EPS of $0.29 for Q1 were 53% higher than the prior-year quarter's $0.19 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 29.2%, 230 basis points better than the prior-year quarter. Operating margin was 8.6%, 190 basis points better than the prior-year quarter. Net margin was 5.0%, 150 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $184.8 million. On the bottom line, the average EPS estimate is $0.17.
Next year's average estimate for revenue is $786.9 million. The average EPS estimate is $0.81.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 78 members out of 88 rating the stock outperform, and 10 members rating it underperform. Among 26 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 25 give Myers Industries 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 Myers Industries is hold, with an average price target of $14.00.
Over the decades, small-cap stocks like Myers 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 Myers 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. 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.