HFF
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), HFF met expectations on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly. GAAP earnings per share expanded significantly.
Gross margins grew, operating margins dropped, net margins increased.
Revenue details
HFF logged revenue of $97.3 million. The two analysts polled by S&P Capital IQ foresaw sales of $96.6 million on the same basis. GAAP reported sales were 28% higher than the prior-year quarter's $75.9 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS details
EPS came in at $0.52. The two earnings estimates compiled by S&P Capital IQ predicted $0.40 per share. GAAP EPS of $0.52 for Q4 were 49% higher than the prior-year quarter's $0.35 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
Margin details
For the quarter, gross margin was 44.6%, 850 basis points better than the prior-year quarter. Operating margin was 22.2%, 300 basis points worse than the prior-year quarter. Net margin was 20.2%, 350 basis points better than the prior-year quarter.
Looking ahead
Next quarter's average estimate for revenue is $57.0 million. On the bottom line, the average EPS estimate is $0.11.
Next year's average estimate for revenue is $316.2 million. The average EPS estimate is $1.20.
Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 23 members out of 46 rating the stock outperform, and 23 members rating it underperform. Among 13 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), six give HFF a green thumbs-up, and seven give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on HFF is buy, with an average price target of $18.00.
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