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Twin Disc Goes Red

By Seth Jayson - Updated Apr 10, 2017 at 1:43PM

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Just the facts, Fool.

Twin Disc (Nasdaq: TWIN) reported earnings on April 23. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 29 (Q3), Twin Disc missed slightly on revenues and missed expectations on earnings per share.

Compared to the prior-year quarter, revenue dropped significantly. GAAP earnings per share dropped to a loss.

Margins shrank across the board.

Revenue details
Twin Disc booked revenue of $68.2 million. The three analysts polled by S&P Capital IQ wanted to see sales of $69.4 million on the same basis. GAAP reported sales were 29% lower than the prior-year quarter's $95.5 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 -$0.07. The three earnings estimates compiled by S&P Capital IQ averaged $0.09 per share. GAAP EPS were -$0.07 for Q3 versus $0.81 per share for the prior-year quarter.

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 25.9%, 870 basis points worse than the prior-year quarter. Operating margin was 0.4%, much worse than the prior-year quarter. Net margin was -1.1%, much worse than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $75.0 million. On the bottom line, the average EPS estimate is $0.17.

Next year's average estimate for revenue is $281.3 million. The average EPS estimate is $0.70.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 323 members out of 330 rating the stock outperform, and seven members rating it underperform. Among 85 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 82 give Twin Disc a green thumbs-up, and three give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Twin Disc is outperform, with an average price target of $23.00.

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Twin Disc, Incorporated Stock Quote
Twin Disc, Incorporated
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