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.
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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.