The 10-second takeaway
For the quarter ended April 30 (Q1), Raven Industries beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly and GAAP earnings per share grew significantly.
Margins increased across the board.
Raven Industries reported revenue of $117.9 million. The one analyst polled by S&P Capital IQ wanted to see a top line of $112.4 million on the same basis. GAAP reported sales were 16% higher than the prior-year quarter's $101.5 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 $1.04. The one earnings estimate compiled by S&P Capital IQ forecast $0.89 per share. GAAP EPS of $1.04 for Q1 were 21% higher than the prior-year quarter's $0.86 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 34.9%, 250 basis points better than the prior-year quarter. Operating margin was 24.1%, 90 basis points better than the prior-year quarter. Net margin was 16.1%, 60 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $102.1 million. On the bottom line, the average EPS estimate is $0.76.
Next year's average estimate for revenue is $422.4 million. The average EPS estimate is $3.02.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 464 members out of 479 rating the stock outperform, and 15 members rating it underperform. Among 158 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 154 give Raven 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 Raven Industries is outperform, with an average price target of $68.00.
Over the decades, small-cap stocks like Raven Industries 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 Raven Industries to My Watchlist.
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.
More from The Motley Fool
3 Stocks That Look Just Like Google in 2004
These three rocket ships look ready for takeoff.
Here's Why Shares of Raven Industries, Inc. Soared 14% in November
Bad weather may devastate some businesses, but for others it can be a boon.
Raven Industries, Inc. Flies Higher on Broad-Based Growth
Between the hurricane-driven outperformance of engineered films, the closing of a strategic acquisition, and a new long-term resource planning initiative, Raven gave investors plenty of reasons to celebrate this quarter.