The 10-second takeaway
For the quarter ended March 31 (Q1), Lydall met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank and GAAP earnings per share improved significantly.
Margins improved across the board.
Lydall reported revenue of $96.8 million. The one analyst polled by S&P Capital IQ predicted revenue of $96.9 million on the same basis. GAAP reported sales were 4.8% lower than the prior-year quarter's $101.7 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 $0.21. The one earnings estimate compiled by S&P Capital IQ forecast $0.18 per share. GAAP EPS of $0.23 for Q1 were 35% higher than the prior-year quarter's $0.17 per share. (The prior-year quarter included $0.01 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 19.9%, 220 basis points better than the prior-year quarter. Operating margin was 5.2%, 110 basis points better than the prior-year quarter. Net margin was 4.0%, 110 basis points better than the prior-year quarter.
On the bottom line, the average EPS estimate is $0.19.
Next year's average estimate for revenue is $391.5 million. The average EPS estimate is $0.73.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 85 members out of 89 rating the stock outperform, and four members rating it underperform. Among 17 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 16 give Lydall a green thumbs-up, and one gives it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Lydall is buy, with an average price target of $14.00.
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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.