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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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.