The 10-second takeaway
For the quarter ended Dec. 31 (Q1), Headwaters beat slightly on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP loss per share contracted.
Gross margins dropped, operating margins dropped, net margins grew.
Headwaters chalked up revenue of $149.6 million. The six analysts polled by S&P Capital IQ looked for a top line of $147.6 million on the same basis. GAAP reported sales were 8.8% higher than the prior-year quarter's $137.4 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 -$0.05. The six earnings estimates compiled by S&P Capital IQ predicted -$0.05 per share. GAAP EPS were -$0.09 for Q1 against -$0.39 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 24.9%, 20 basis points worse than the prior-year quarter. Operating margin was 4.0%, 20 basis points worse than the prior-year quarter. Net margin was -3.9%, 1,340 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $139.0 million. On the bottom line, the average EPS estimate is -$0.12.
Next year's average estimate for revenue is $695.1 million. The average EPS estimate is $0.21.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 740 members out of 814 rating the stock outperform, and 74 members rating it underperform. Among 196 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 173 give Headwaters a green thumbs-up, and 23 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Headwaters is outperform, with an average price target of $9.25.
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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 position in any of the stocks mentioned. 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.