Westwood Holdings Group
The 10-second takeaway
For the quarter ended June 30 (Q2), Westwood Holdings Group beat expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue expanded and GAAP earnings per share contracted significantly.
Margins shrank across the board.
Westwood Holdings Group logged revenue of $20.1 million. The one analyst polled by S&P Capital IQ expected sales of $18.4 million on the same basis. GAAP reported sales were 6.4% higher than the prior-year quarter's $18.9 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 $0.30. The one earnings estimate compiled by S&P Capital IQ forecast $0.53 per share. GAAP EPS of $0.30 for Q2 were 42% lower than the prior-year quarter's $0.52 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 40.8%, 550 basis points worse than the prior-year quarter. Operating margin was 18.7%, 1,270 basis points worse than the prior-year quarter. Net margin was 11.0%, 880 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $18.5 million. On the bottom line, the average EPS estimate is $0.55.
Next year's average estimate for revenue is $73.2 million. The average EPS estimate is $2.14.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 142 members out of 149 rating the stock outperform, and seven members rating it underperform. Among 17 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 17 give Westwood Holdings Group a green thumbs-up, and give it a red thumbs-down.
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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. TMFDisclosureHere