The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Black Diamond beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly. Non-GAAP earnings per share shrank significantly. GAAP earnings per share contracted significantly.
Margins dropped across the board.
Black Diamond recorded revenue of $48.8 million. The eight analysts polled by S&P Capital IQ predicted revenue of $48.3 million on the same basis. GAAP reported sales were 34% higher than the prior-year quarter's $36.3 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 $0.04. The seven earnings estimates compiled by S&P Capital IQ predicted -$0.02 per share. Non-GAAP EPS of $0.04 for Q4 were 75% lower than the prior-year quarter's $0.16 per share. GAAP EPS of $0.02 for Q4 were 88% lower than the prior-year quarter's $0.16 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 36.3%, 290 basis points worse than the prior-year quarter. Operating margin was -3.7%, 600 basis points worse than the prior-year quarter. Net margin was 1.1%, 860 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $54.7 million. On the bottom line, the average EPS estimate is $0.05.
Next year's average estimate for revenue is $218.6 million. The average EPS estimate is $0.05.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 14 members out of 16 rating the stock outperform, and two members rating it underperform. Among four CAPS All-Star picks (recommendations by the highest-ranked CAPS members), two give Black Diamond 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 Black Diamond is buy, with an average price target of $12.21.
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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.