The 10-second takeaway
For the quarter ended March 31 (Q1), Mueller Industries whiffed on revenue and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped significantly and GAAP earnings per share contracted significantly.
Gross margin increased, operating margin increased, and net margin shrank.
Mueller Industries booked revenue of $577.7 million. The one analyst polled by S&P Capital IQ predicted sales of $689.7 million on the same basis. GAAP reported sales were 16% lower than the prior-year quarter's $687.7 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 $0.69. The two earnings estimates compiled by S&P Capital IQ anticipated $0.65 per share on the same basis. GAAP EPS of $0.85 for Q1 were 21% lower than the prior-year quarter's $1.07 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 14.6%, 40 basis points better than the prior-year quarter. Operating margin was 7.9%, 20 basis points better than the prior-year quarter. Net margin was 5.6%, 30 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $666.7 million. On the bottom line, the average EPS estimate is $0.59.
Next year's average estimate for revenue is $2.52 billion. The average EPS estimate is $2.35.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 154 members out of 165 rating the stock outperform, and 11 members rating it underperform. Among 46 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 44 give Mueller Industries a green thumbs-up, and two give it a red thumbs-down.
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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.