The 10-second takeaway
For the quarter ended March 31 (Q1), Gorman-Rupp beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue improved significantly and GAAP earnings per share grew significantly.
Margins expanded across the board.
Gorman-Rupp chalked up revenue of $102.8 million. The three analysts polled by S&P Capital IQ predicted revenue of $91.6 million on the same basis. GAAP reported sales were 22% higher than the prior-year quarter's $84.1 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 $0.49. The four earnings estimates compiled by S&P Capital IQ forecast $0.37 per share. GAAP EPS of $0.49 for Q1 were 44% higher than the prior-year quarter's $0.34 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 25.9%, 50 basis points better than the prior-year quarter. Operating margin was 14.8%, 210 basis points better than the prior-year quarter. Net margin was 10.0%, 150 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $99.5 million. On the bottom line, the average EPS estimate is $0.46.
Next year's average estimate for revenue is $388.7 million. The average EPS estimate is $1.69.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 296 members out of 308 rating the stock outperform, and 12 members rating it underperform. Among 59 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 56 give Gorman-Rupp a green thumbs-up, and three give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Gorman-Rupp is buy, with an average price target of $38.67.
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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.