The 10-second takeaway
For the quarter ended March 31 (Q1), Standard Pacific beat slightly on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue improved significantly and GAAP earnings per share increased.
Margins improved across the board.
Standard Pacific chalked up revenue of $223.7 million. The six analysts polled by S&P Capital IQ expected revenue of $220.8 million on the same basis. GAAP reported sales were 57% higher than the prior-year quarter's $144.8 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 $0.00. The seven earnings estimates compiled by S&P Capital IQ averaged $0.00 per share. GAAP EPS were $0.02 for Q1 against -$0.04 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 20.3%, 90 basis points better than the prior-year quarter. Operating margin was 3.7%, 620 basis points better than the prior-year quarter. Net margin was 3.7%, 1,390 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $288.8 million. On the bottom line, the average EPS estimate is $0.03.
Next year's average estimate for revenue is $1.15 billion. The average EPS estimate is $0.16.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 351 members out of 592 rating the stock outperform, and 241 members rating it underperform. Among 167 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 68 give Standard Pacific a green thumbs-up, and 99 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Standard Pacific is hold, with an average price target of $4.92.
Over the decades, small-cap stocks like Standard Pacific have produced 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: 2 Small Caps the Government Won't Let Go Broke." Click here for instant access to this free report.
- Add Standard Pacific 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. Motley Fool newsletter services have recommended writing naked calls on Standard Pacific. 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.