NCI Building Systems
The 10-second takeaway
For the quarter ended July 29 (Q3), NCI Building Systems met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue improved and GAAP loss per share expanded. The non-GAAP profit was a surprise, as analysts had predicted a loss.
Gross margins increased, operating margins expanded, net margins shrank.
NCI Building Systems logged revenue of $298.5 million. The two analysts polled by S&P Capital IQ expected revenue of $298.9 million on the same basis. GAAP reported sales were 14% higher than the prior-year quarter's $262.1 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 $0.05. The two earnings estimates compiled by S&P Capital IQ predicted -$0.05 per share. GAAP EPS were -$2.74 for Q3 versus -$0.71 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 22.0%, 30 basis points better than the prior-year quarter. Operating margin was 3.3%, 100 basis points better than the prior-year quarter. Net margin was -1.1%, 210 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $348.7 million. On the bottom line, the average EPS estimate is $0.12.
Next year's average estimate for revenue is $1.14 billion. The average EPS estimate is -$0.04.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 170 members out of 188 rating the stock outperform, and 18 members rating it underperform. Among 46 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 42 give NCI Building Systems a green thumbs-up, and four give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on NCI Building Systems is outperform, with an average price target of $14.00.
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