The 10-second takeaway
For the quarter ended March 31 (Q1), Douglas Dynamics whiffed on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank significantly and GAAP loss per share increased.
Margins dropped across the board.
Douglas Dynamics notched revenue of $8.6 million. The five analysts polled by S&P Capital IQ expected to see revenue of $14.1 million on the same basis. GAAP reported sales were 64% lower than the prior-year quarter's $23.5 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 -$0.19. The five earnings estimates compiled by S&P Capital IQ predicted -$0.17 per share. GAAP EPS were -$0.19 for Q1 versus -$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 21.3%, 1,730 basis points worse than the prior-year quarter. Operating margin was -48.0%, 5,590 basis points worse than the prior-year quarter. Net margin was -49.9%, 4,650 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $63.7 million. On the bottom line, the average EPS estimate is $0.38.
Next year's average estimate for revenue is $179.7 million. The average EPS estimate is $0.67.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 38 members out of 41 rating the stock outperform, and three members rating it underperform. Among nine CAPS All-Star picks (recommendations by the highest-ranked CAPS members), nine give Douglas Dynamics a green thumbs-up, and give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Douglas Dynamics is outperform, with an average price target of $16.50.
Can your retirement portfolio provide you with enough income to last? You'll need more than Douglas Dynamics. Learn about crafting a smarter retirement plan in "The Shocking Can't-Miss Truth About Your Retirement." Click here for instant access to this free report.
- Add Douglas Dynamics 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 buying shares of Douglas Dynamics. 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.