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Capital Product Partners Hits Estimates, But GAAP Results Lag Last Year's

By Seth Jayson - Updated Apr 7, 2017 at 12:01PM

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Just the facts, Fool.

Capital Product Partners (Nasdaq: CPLP) reported earnings on Oct. 31. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Capital Product Partners met expectations on revenues and met expectations on earnings per share.

Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share contracted significantly.

Margins dropped across the board.

Revenue details
Capital Product Partners recorded revenue of $38.0 million. The six analysts polled by S&P Capital IQ expected a top line of $38.4 million on the same basis. GAAP reported sales were 23% higher than the prior-year quarter's $30.9 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.06. The six earnings estimates compiled by S&P Capital IQ predicted $0.06 per share. GAAP EPS of $0.06 for Q3 were 96% lower than the prior-year quarter's $1.52 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 67.0%, 130 basis points worse than the prior-year quarter. Operating margin was 29.1%, 730 basis points worse than the prior-year quarter. Net margin was 19.0%, 20,310 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $39.3 million. On the bottom line, the average EPS estimate is $0.07.

Next year's average estimate for revenue is $153.7 million. The average EPS estimate is $0.16.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 175 members out of 179 rating the stock outperform, and four members rating it underperform. Among 49 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 47 give Capital Product Partners 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 Capital Product Partners is outperform, with an average price target of $8.78.

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