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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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. The Motley Fool has no positions in the stocks mentioned above. 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.