The 10-second takeaway
For the quarter ended March 31 (Q1), Lufkin Industries beat slightly on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue increased significantly and GAAP earnings per share shrank significantly.
Gross margins improved, operating margins expanded, net margins shrank.
Lufkin Industries notched revenue of $279.5 million. The four analysts polled by S&P Capital IQ expected a top line of $276.1 million on the same basis. GAAP reported sales were 44% higher than the prior-year quarter's $194.4 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 $0.56. The eight earnings estimates compiled by S&P Capital IQ anticipated $0.59 per share. GAAP EPS of $0.34 for Q1 were 15% lower than the prior-year quarter's $0.40 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 24.2%, 40 basis points better than the prior-year quarter. Operating margin was 11.2%, 120 basis points better than the prior-year quarter. Net margin was 3.9%, 250 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $316.0 million. On the bottom line, the average EPS estimate is $0.95.
Next year's average estimate for revenue is $1.29 billion. The average EPS estimate is $4.08.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 601 members out of 625 rating the stock outperform, and 24 members rating it underperform. Among 185 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 181 give Lufkin Industries a green thumbs-up, and four give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Lufkin Industries is outperform, with an average price target of $94.50.
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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.