The 10-second takeaway
For the quarter ended March 31 (Q2), OYO Geospace beat expectations on revenues and beat expectations on earnings per share.
Compared with the prior-year quarter, revenue improved and GAAP earnings per share grew significantly.
Margins improved across the board.
OYO Geospace tallied revenue of $56.2 million. The five analysts polled by S&P Capital IQ expected revenue of $50.9 million on the same basis. GAAP reported sales were 11% higher than the prior-year quarter's $50.7 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 $1.78. The four earnings estimates compiled by S&P Capital IQ forecast $1.58 per share. GAAP EPS of $1.78 for Q2 were 29% higher than the prior-year quarter's $1.38 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 44.6%, 180 basis points better than the prior-year quarter. Operating margin was 29.3%, 360 basis points better than the prior-year quarter. Net margin was 20.3%, 310 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $51.7 million. On the bottom line, the average EPS estimate is $1.65.
Next year's average estimate for revenue is $196.7 million. The average EPS estimate is $6.25.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 1,226 members out of 1,252 rating the stock outperform, and 26 members rating it underperform. Among 457 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 452 give OYO Geospace a green thumbs-up, and five give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on OYO Geospace is buy, with an average price target of $141.60.
Over the decades, small-cap stocks like OYO Geospace 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." Get instant access to this free report.
- Add OYO Geospace to My Watchlist.
Seth Jayson owned shares of OYO Geospace at the time of publication. You can view his stock holdings. He is the 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 buying shares of OYO Geospace. Try any of our Foolish newsletter services free for 30 days. We Fools don't 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.