The 10-second takeaway
For the quarter ended Sep. 29 (Q3), Mueller Industries missed estimates on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue contracted and GAAP earnings per share increased significantly.
Margins expanded across the board.
Mueller Industries booked revenue of $514.2 million. The one analyst polled by S&P Capital IQ predicted revenue of $547.3 million on the same basis. GAAP reported sales were 12% lower than the prior-year quarter's $585.8 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 $0.41. The two earnings estimates compiled by S&P Capital IQ forecast $0.49 per share. GAAP EPS of $0.41 for Q3 were 52% higher than the prior-year quarter's $0.27 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 12.5%, 190 basis points better than the prior-year quarter. Operating margin was 4.8%, 160 basis points better than the prior-year quarter. Net margin was 3.0%, 120 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $515.1 million. On the bottom line, the average EPS estimate is $0.59.
Next year's average estimate for revenue is $2.28 billion. The average EPS estimate is $2.31.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 153 members out of 162 rating the stock outperform, and nine members rating it underperform. Among 49 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 48 give Mueller Industries a green thumbs-up, and one give it a red thumbs-down.
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