The 10-second takeaway
For the quarter ended March 31 (Q3), WMS Industries met expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue increased slightly. Non-GAAP earnings per share shrank significantly. GAAP earnings per share contracted significantly.
Gross margins grew, operating margins contracted, net margins dropped.
WMS Industries reported revenue of $177.9 million. The 13 analysts polled by S&P Capital IQ expected sales of $176.9 million on the same basis. GAAP reported sales were the same as the prior-year quarter's.
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 $0.20. The 14 earnings estimates compiled by S&P Capital IQ predicted $0.26 per share. Non-GAAP EPS of $0.20 for Q3 were 50% lower than the prior-year quarter's $0.40 per share. GAAP EPS of $0.14 for Q3 were 65% lower than the prior-year quarter's $0.40 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 64.0%, 140 basis points better than the prior-year quarter. Operating margin was 2.9%, much worse than the prior-year quarter. Net margin was 4.2%, 840 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $196.5 million. On the bottom line, the average EPS estimate is $0.27.
Next year's average estimate for revenue is $689.9 million. The average EPS estimate is $0.83.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 164 members out of 189 rating the stock outperform, and 25 members rating it underperform. Among 54 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 47 give WMS Industries 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 WMS Industries is hold, with an average price target of $23.33.
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