The 10-second takeaway
For the quarter ended June 30 (Q2), Drew Industries beat expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly and GAAP earnings per share increased.
Margins dropped across the board.
Drew Industries reported revenue of $251.0 million. The three analysts polled by S&P Capital IQ anticipated revenue of $236.3 million on the same basis. GAAP reported sales were 35% higher than the prior-year quarter's $186.0 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 $0.52. The three earnings estimates compiled by S&P Capital IQ forecast $0.57 per share. GAAP EPS of $0.52 for Q2 were 6.1% higher than the prior-year quarter's $0.49 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 18.5%, 410 basis points worse than the prior-year quarter. Operating margin was 7.6%, 200 basis points worse than the prior-year quarter. Net margin was 4.7%, 120 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $225.0 million. On the bottom line, the average EPS estimate is $0.45.
Next year's average estimate for revenue is $876.7 million. The average EPS estimate is $1.70.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 367 members out of 403 rating the stock outperform, and 36 members rating it underperform. Among 163 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 155 give Drew Industries a green thumbs-up, and eight give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Drew Industries is hold, with an average price target of $32.50.
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Seth Jayson owned shares of the following at the time of publication: Drew Industries. 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. The Motley Fool has no positions in the stocks mentioned above. Motley Fool newsletter services recommend Drew Industries. 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.