The 10-second takeaway
For the quarter ended March 31 (Q3), WMS Industries missed estimates on revenue and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue dropped and GAAP earnings per share dropped.
Gross margin expanded, operating margin dropped, and net margin were steady.
WMS Industries tallied revenue of $176.0 million. The 13 analysts polled by S&P Capital IQ looked for a top line of $188.5 million on the same basis. GAAP reported sales were 8.7% lower than the prior-year quarter's $192.7 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 $0.40. The 16 earnings estimates compiled by S&P Capital IQ predicted $0.42 per share. GAAP EPS of $0.40 for Q3 were 2.4% lower than the prior-year quarter's $0.41 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 62.6%, 190 basis points better than the prior-year quarter. Operating margin was 17.7%, 40 basis points worse than the prior-year quarter. Net margin was 12.6%, about the same as the prior-year quarter.
Next quarter's average estimate for revenue is $199.3 million. On the bottom line, the average EPS estimate is $0.50.
Next year's average estimate for revenue is $706.7 million. The average EPS estimate is $1.44.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 175 members out of 202 rating the stock outperform, and 27 members rating it underperform. Among 54 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 49 give WMS Industries 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 WMS Industries is hold, with an average price target of $22.84.
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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.