The 10-second takeaway
For the quarter ended March 31 (Q1), Black Diamond beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share increased significantly.
Margins increased across the board.
Black Diamond reported revenue of $46.4 million. The five analysts polled by S&P Capital IQ wanted to see a top line of $44.4 million on the same basis. GAAP reported sales were 19% higher than the prior-year quarter's $39.1 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 $0.10. The four earnings estimates compiled by S&P Capital IQ averaged $0.06 per share. GAAP EPS of $0.10 for Q1 were 100% higher than the prior-year quarter's $0.05 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 40.1%, 150 basis points better than the prior-year quarter. Operating margin was 10.2%, 320 basis points better than the prior-year quarter. Net margin was 5.6%, 260 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $32.4 million. On the bottom line, the average EPS estimate is -$0.04.
Next year's average estimate for revenue is $163.8 million. The average EPS estimate is $0.06.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 12 members out of 12 rating the stock outperform. Among two CAPS All-Star picks (recommendations by the highest-ranked CAPS members), two give Black Diamond a green thumbs-up.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Black Diamond is buy, with an average price target of $10.60.
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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.