The 10-second takeaway
For the quarter ended Sep. 30 (Q3), HFF beat slightly on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue increased and GAAP earnings per share shrank.
Gross margins grew, operating margins dropped, net margins dropped.
HFF booked revenue of $69.0 million. The two analysts polled by S&P Capital IQ wanted to see net sales of $67.9 million on the same basis. GAAP reported sales were 8.0% higher than the prior-year quarter's $63.9 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 $0.26. The two earnings estimates compiled by S&P Capital IQ forecast $0.28 per share. GAAP EPS of $0.27 for Q3 were 6.9% lower than the prior-year quarter's $0.29 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 41.8%, 670 basis points better than the prior-year quarter. Operating margin was 17.9%, 450 basis points worse than the prior-year quarter. Net margin was 14.6%, 180 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $86.5 million. On the bottom line, the average EPS estimate is $0.40.
Next year's average estimate for revenue is $273.1 million. The average EPS estimate is $1.06.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 22 members out of 47 rating the stock outperform, and 25 members rating it underperform. Among 14 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), six give HFF a green thumbs-up, and eight give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on HFF is buy, with an average price target of $18.00.
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