The 10-second takeaway
For the quarter ended March 31 (Q1), Omega Protein beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly. Non-GAAP earnings per share expanded significantly. GAAP earnings per share expanded significantly.
Margins grew across the board.
Omega Protein notched revenue of $48.9 million. The two analysts polled by S&P Capital IQ expected to see a top line of $41.8 million on the same basis. GAAP reported sales were 23% higher than the prior-year quarter's $39.7 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 $0.15. The three earnings estimates compiled by S&P Capital IQ predicted $0.09 per share. Non-GAAP EPS of $0.15 for Q1 were 88% higher than the prior-year quarter's $0.08 per share. GAAP EPS of $0.14 for Q1 were 56% higher than the prior-year quarter's $0.09 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 24.7%, 230 basis points better than the prior-year quarter. Operating margin was 10.4%, 340 basis points better than the prior-year quarter. Net margin was 5.8%, 120 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $48.7 million. On the bottom line, the average EPS estimate is $0.13.
Next year's average estimate for revenue is $255.7 million. The average EPS estimate is $0.79.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 120 members out of 132 rating the stock outperform, and 12 members rating it underperform. Among 33 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 30 give Omega Protein 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 Omega Protein is buy, with an average price target of $12.00.
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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 owns shares of Omega Protein. 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.