The 10-second takeaway
For the quarter ended March 30 (Q1), Anixter International met expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue was unchanged and GAAP earnings per share expanded significantly.
Gross margins dropped, operating margins expanded, net margins expanded.
Anixter International reported revenue of $1.52 billion. The seven analysts polled by S&P Capital IQ predicted sales of $1.53 billion on the same basis. GAAP reported sales were 3.5% higher than the prior-year quarter's $1.47 billion.
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 $1.37. The nine earnings estimates compiled by S&P Capital IQ anticipated $1.43 per share. GAAP EPS of $1.61 for Q1 were 32% higher than the prior-year quarter's $1.22 per share. (The prior-year quarter included $0.09 per share in earnings from discontinued operations.)
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 22.9%, 10 basis points worse than the prior-year quarter. Operating margin was 5.7%, 10 basis points better than the prior-year quarter. Net margin was 3.6%, 60 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $1.63 billion. On the bottom line, the average EPS estimate is $1.56.
Next year's average estimate for revenue is $6.44 billion. The average EPS estimate is $6.16.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 188 members out of 210 rating the stock outperform, and 22 members rating it underperform. Among 69 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 66 give Anixter International a green thumbs-up, and three give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Anixter International is outperform, with an average price target of $78.21.
Over the decades, small-cap stocks, like Anixter International 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." Click here for instant access to this free report.
- Add Anixter International to My Watchlist.