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.
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