The 10-second takeaway
For the quarter ended March 31 (Q1), Barnes Group whiffed on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue dropped. Non-GAAP earnings per share shrank. GAAP earnings per share dropped significantly.
Margins dropped across the board.
Barnes Group reported revenue of $263.5 million. The four analysts polled by S&P Capital IQ hoped for net sales of $313.2 million on the same basis. GAAP reported sales were 13% lower than the prior-year quarter's $303.1 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 $0.40. The five earnings estimates compiled by S&P Capital IQ anticipated $0.44 per share. Non-GAAP EPS of $0.40 for Q1 were 2.4% lower than the prior-year quarter's $0.41 per share. (The prior-year quarter included -$0.01 per share in earnings from discontinued operations.) GAAP EPS of $0.24 for Q1 were 40% lower than the prior-year quarter's $0.40 per share. (The prior-year quarter included -$0.01 per share in earnings from discontinued operations.)
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%, 80 basis points worse than the prior-year quarter. Operating margin was 9.5%, 140 basis points worse than the prior-year quarter. Net margin was 5.1%, 220 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $313.5 million. On the bottom line, the average EPS estimate is $0.49.
Next year's average estimate for revenue is $1.26 billion. The average EPS estimate is $1.94.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 441 members out of 477 rating the stock outperform, and 36 members rating it underperform. Among 117 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 110 give Barnes Group 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 Barnes Group is outperform, with an average price target of $32.83.
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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.