The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Black Diamond missed estimates on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly and GAAP earnings per share shrank significantly.
Margins dropped across the board.
Black Diamond tallied revenue of $48.7 million. The eight analysts polled by S&P Capital IQ expected to see revenue of $51.4 million on the same basis. GAAP reported sales were 16% higher than the prior-year quarter's $42.0 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 $0.05. The five earnings estimates compiled by S&P Capital IQ predicted $0.04 per share. GAAP EPS of $0.02 for Q3 were 60% lower than the prior-year quarter's $0.05 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 37.9%, 20 basis points worse than the prior-year quarter. Operating margin was 3.5%, 400 basis points worse than the prior-year quarter. Net margin was 1.5%, 90 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $50.2 million. On the bottom line, the average EPS estimate is $0.01.
Next year's average estimate for revenue is $180.0 million. The average EPS estimate is $0.09.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 16 members out of 20 rating the stock outperform, and four members rating it underperform. Among six CAPS All-Star picks (recommendations by the highest-ranked CAPS members), four give Black Diamond 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 Black Diamond is buy, with an average price target of $12.33.
With hundreds of companies out there vying with Black Diamond for shoppers' dollars, strong brands matter, and they can provide growth for even boring, mature companies -- as long as they're the right ones. That's why we've compiled a special report on "3 American Companies Set to Dominate the World." Click here for instant access to this free report.
- Add Black Diamond to My Watchlist.
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.