The 10-second takeaway
For the quarter ended March 31 (Q1), Sun Hydraulics beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share increased.
Gross margins increased, operating margins expanded, net margins contracted.
Sun Hydraulics booked revenue of $55.3 million. The three analysts polled by S&P Capital IQ expected revenue of $53.4 million on the same basis. GAAP reported sales were 9.0% 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 $0.41. The three earnings estimates compiled by S&P Capital IQ predicted $0.38 per share. GAAP EPS of $0.41 for Q1 were 7.9% higher than the prior-year quarter's $0.38 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 40.2%, 90 basis points better than the prior-year quarter. Operating margin was 27.6%, 20 basis points better than the prior-year quarter. Net margin was 19.2%, 10 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $57.3 million. On the bottom line, the average EPS estimate is $0.42.
Next year's average estimate for revenue is $218.1 million. The average EPS estimate is $1.58.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 1,295 members out of 1,312 rating the stock outperform, and 17 members rating it underperform. Among 389 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 387 give Sun Hydraulics a green thumbs-up, and two give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Sun Hydraulics is hold, with an average price target of $30.00.
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