The 10-second takeaway
For the quarter ended June 30 (Q4), Twin Disc met expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue contracted slightly and GAAP earnings per share shrank significantly.
Margins contracted across the board.
Twin Disc logged revenue of $96.1 million. The four analysts polled by S&P Capital IQ anticipated a top line of $96.2 million on the same basis. GAAP reported sales were 1.3% lower than the prior-year quarter's $97.4 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 $0.15. The four earnings estimates compiled by S&P Capital IQ forecast $0.65 per share. GAAP EPS of $0.11 for Q4 were 83% lower than the prior-year quarter's $0.66 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 29.4%, 770 basis points worse than the prior-year quarter. Operating margin was 8.9%, 540 basis points worse than the prior-year quarter. Net margin was 1.3%, 650 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $70.9 million. On the bottom line, the average EPS estimate is $0.29.
Next year's average estimate for revenue is $321.6 million. The average EPS estimate is $1.71.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 323 members out of 331 rating the stock outperform, and eight members rating it underperform. Among 85 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 83 give Twin Disc a green thumbs-up, and two give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Twin Disc is outperform, with an average price target of $32.00.
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