The 10-second takeaway
For the quarter ended June 30 (Q2), CARBO Ceramics beat expectations on revenues and beat expectations on earnings per share.
Compared with the prior-year quarter, revenue increased significantly and GAAP earnings per share grew.
Margins contracted across the board.
CARBO Ceramics logged revenue of $177.6 million. The four analysts polled by S&P Capital IQ expected to see sales of $162.7 million on the same basis. GAAP reported sales were 19% higher than the prior-year quarter's $149.7 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 $1.38. The nine earnings estimates compiled by S&P Capital IQ anticipated $1.31 per share. GAAP EPS of $1.38 for Q2 were 7.0% higher than the prior-year quarter's $1.29 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 36.2%, 530 basis points worse than the prior-year quarter. Operating margin was 26.6%, 430 basis points worse than the prior-year quarter. Net margin was 18.0%, 200 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $170.4 million. On the bottom line, the average EPS estimate is $1.37.
Next year's average estimate for revenue is $684.9 million. The average EPS estimate is $5.47.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 425 members out of 453 rating the stock outperform, and 28 members rating it underperform. Among 106 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 96 give CARBO Ceramics a green thumbs-up, and 10 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on CARBO Ceramics is outperform, with an average price target of $112.00.
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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 the co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool owns shares of CARBO Ceramics. Try any of our Foolish newsletter services free for 30 days. We Fools don't 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.