The 10-second takeaway
For the quarter ended Dec. 29 (Q4), Sun Hydraulics beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped. GAAP earnings per share grew.
Gross margins grew, operating margins shrank, net margins expanded.
Sun Hydraulics reported revenue of $43.2 million. The three analysts polled by S&P Capital IQ expected sales of $41.4 million on the same basis. GAAP reported sales were 5.3% lower than the prior-year quarter's $45.7 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 $0.26. The three earnings estimates compiled by S&P Capital IQ averaged $0.23 per share. GAAP EPS of $0.26 for Q4 were 8.3% higher than the prior-year quarter's $0.24 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 37.0%, 10 basis points better than the prior-year quarter. Operating margin was 21.9%, 100 basis points worse than the prior-year quarter. Net margin was 15.5%, 220 basis points better 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 $0.34.
Next year's average estimate for revenue is $204.0 million. The average EPS estimate is $1.40.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 1,308 members out of 1,325 rating the stock outperform, and 17 members rating it underperform. Among 406 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 404 give Sun Hydraulics 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 Sun Hydraulics is hold, with an average price target of $28.50.
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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 recommends Sun Hydraulics. The Motley Fool owns shares of Sun Hydraulics. 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.