The 10-second takeaway
For the quarter ended Oct. 31 (Q3), Raven Industries missed estimates on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share dropped.
Gross margins expanded, operating margins dropped, net margins dropped.
Raven Industries reported revenue of $97.0 million. The one analyst polled by S&P Capital IQ wanted to see revenue of $101.7 million on the same basis. GAAP reported sales were 4.0% higher than the prior-year quarter's $93.3 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 $0.30. The one earnings estimate compiled by S&P Capital IQ predicted $0.34 per share. GAAP EPS of $0.30 for Q3 were 3.2% lower than the prior-year quarter's $0.31 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 30.5%, 130 basis points better than the prior-year quarter. Operating margin was 16.9%, 120 basis points worse than the prior-year quarter. Net margin was 11.2%, 100 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $104.7 million. On the bottom line, the average EPS estimate is $0.33.
Next year's average estimate for revenue is $426.0 million. The average EPS estimate is $1.51.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 456 members out of 472 rating the stock outperform, and 16 members rating it underperform. Among 144 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 139 give Raven Industries a green thumbs-up, and five give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Raven Industries is outperform, with an average price target of $31.50.
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