The 10-second takeaway
For the quarter ended March 31 (Q4), Multi-Color beat expectations on revenues and earnings per share.
Compared to the prior-year quarter, revenue expanded significantly and GAAP earnings per share contracted.
Gross margins dropped, operating margins expanded, and net margins dropped.
Multi-Color reported revenue of $160.6 million. The two analysts polled by S&P Capital IQ expected a top line of $154.0 million on the same basis. GAAP reported sales were 78% higher than the prior-year quarter's $90.1 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 $0.43. The two earnings estimates compiled by S&P Capital IQ averaged $0.39 per share. GAAP EPS of $0.28 for Q4 were 6.7% lower than the prior-year quarter's $0.30 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 19.6%, 80 basis points worse than the prior-year quarter. Operating margin was 9.3%, 30 basis points better than the prior-year quarter. Net margin was 2.8%, 180 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $165.9 million. On the bottom line, the average EPS estimate is $0.49.
Next year's average estimate for revenue is $639.6 million. The average EPS estimate is $2.04.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 169 members out of 175 rating the stock outperform, and six members rating it underperform. Among 49 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 49 give Multi-Color a green thumbs-up.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Multi-Color is hold, with an average price target of $26.
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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.