The 10-second takeaway
For the quarter ended Dec. 31 (Q4), CECO Environmental missed estimates on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted. GAAP earnings per share grew.
Margins grew across the board.
CECO Environmental booked revenue of $34.3 million. The four analysts polled by S&P Capital IQ predicted revenue of $38.0 million on the same basis. GAAP reported sales were 9.1% lower than the prior-year quarter's $37.8 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 $0.18. The four earnings estimates compiled by S&P Capital IQ predicted $0.18 per share. GAAP EPS of $0.18 for Q4 were 5.9% higher than the prior-year quarter's $0.17 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 32.6%, 270 basis points better than the prior-year quarter. Operating margin was 12.8%, 270 basis points better than the prior-year quarter. Net margin was 8.9%, 160 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $36.3 million. On the bottom line, the average EPS estimate is $0.16.
Next year's average estimate for revenue is $165.1 million. The average EPS estimate is $0.77.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 129 members out of 134 rating the stock outperform, and five members rating it underperform. Among 31 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 29 give CECO Environmental 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 CECO Environmental is buy, with an average price target of $11.31.
Looking for alternatives to CECO Environmental? It takes more than great companies to build a fortune for the future. Learn the basic financial habits of millionaires next door and get focused stock ideas in our free report, "3 Stocks That Will Help You Retire Rich." Click here for instant access to this free report.
- Add CECO Environmental to My Watchlist.
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.
More from The Motley Fool
My 3 Best Stocks for 2013
From a coal-cleaning company to the hottest electric-auto maker around, here are this Fool's three best stocks for 2013.
CECO Environmental Keeps Dividend Steady
Pollution control technology specialist raised the payout to investors 11% two quarters ago.
Why CECO Environmental's Earnings Are Outstanding
All cash flow is not created equal.