The 10-second takeaway
For the quarter ended Dec. 31 (Q3), Multi-Color beat slightly on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue increased and GAAP earnings per share expanded significantly.
Margins grew across the board.
Multi-Color booked revenue of $157.0 million. The two analysts polled by S&P Capital IQ wanted to see net sales of $154.2 million on the same basis. GAAP reported sales were 7.2% higher than the prior-year quarter's $146.4 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 $0.42. The two earnings estimates compiled by S&P Capital IQ predicted $0.43 per share. GAAP EPS of $0.36 for Q3 were 260% higher than the prior-year quarter's $0.10 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 19.4%, 230 basis points better than the prior-year quarter. Operating margin was 9.7%, 130 basis points better than the prior-year quarter. Net margin was 3.7%, 260 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $166.4 million. On the bottom line, the average EPS estimate is $0.54.
Next year's average estimate for revenue is $657.0 million. The average EPS estimate is $2.03.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 169 members out of 175 rating the stock outperform, and six members rating it underperform. Among 53 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 53 give Multi-Color a green thumbs-up, and give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Multi-Color is outperform, with an average price target of $27.67.
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