The 10-second takeaway
For the quarter ended March 31 (Q1), Nacco Industries met expectations on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue increased and GAAP earnings per share shrank significantly.
Gross margins shrank, operating margins improved, and net margins shrank.
Nacco Industries reported revenue of $803.2 million. The one analyst polled by S&P Capital IQ expected to see revenue of $809.6 million on the same basis. GAAP reported sales were 7.7% higher than the prior-year quarter's $745.5 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 $3.00. The one earnings estimate compiled by S&P Capital IQ predicted $1.98 per share. GAAP EPS of $3.00 for Q1 were 60% lower than the prior-year quarter's $7.48 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 18.0%, 30 basis points worse than the prior-year quarter. Operating margin was 3.2%, 10 basis points better than the prior-year quarter. Net margin was 3.1%, 530 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $842.4 million. On the bottom line, the average EPS estimate is $2.58.
Next year's average estimate for revenue is $3.53 billion. The average EPS estimate is $13.45.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 113 members rating the stock outperform, and 10 members rating it underperform. Among 28 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 27 give Nacco Industries a green thumbs-up, and one gives 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.