The 10-second takeaway
For the quarter ended Dec. 31 (Q4), CIRCOR International missed estimates on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank. Non-GAAP earnings per share grew significantly. GAAP earnings per share shrank.
Gross margins grew, operating margins were steady, net margins shrank.
CIRCOR International chalked up revenue of $201.6 million. The four analysts polled by S&P Capital IQ anticipated sales of $207.5 million on the same basis. GAAP reported sales were 7.1% lower than the prior-year quarter's $217.1 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 $0.69. The seven earnings estimates compiled by S&P Capital IQ anticipated $0.55 per share. Non-GAAP EPS of $0.69 for Q4 were 17% higher than the prior-year quarter's $0.59 per share. GAAP EPS of $0.53 for Q4 were 10% lower than the prior-year quarter's $0.59 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 30.0%, 270 basis points better than the prior-year quarter. Operating margin was 7.7%, much about the same as the prior-year quarter. Net margin was 4.6%, 10 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $212.4 million. On the bottom line, the average EPS estimate is $0.56.
Next year's average estimate for revenue is $882.8 million. The average EPS estimate is $2.85.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 136 members out of 142 rating the stock outperform, and six members rating it underperform. Among 40 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 38 give CIRCOR International 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 CIRCOR International is outperform, with an average price target of $43.80.
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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.