Diamond Hill Investment Group
The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Diamond Hill Investment Group beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded and GAAP earnings per share increased significantly.
Margins expanded across the board.
Diamond Hill Investment Group booked revenue of $16.9 million. The one analyst polled by S&P Capital IQ looked for revenue of $15.6 million on the same basis. GAAP reported sales were 9.7% higher than the prior-year quarter's $15.4 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 $1.32. The one earnings estimate compiled by S&P Capital IQ averaged $1.11 per share. GAAP EPS of $1.32 for Q3 were 57% higher than the prior-year quarter's $0.84 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 96.5%, 5,240 basis points better than the prior-year quarter. Operating margin was 35.8%, 40 basis points better than the prior-year quarter. Net margin was 24.7%, 820 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $15.4 million. On the bottom line, the average EPS estimate is $1.41.
Next year's average estimate for revenue is $63.8 million. The average EPS estimate is $5.56.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 174 members out of 181 rating the stock outperform, and seven members rating it underperform. Among 57 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 55 give Diamond Hill Investment Group a green thumbs-up, and two 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.