The 10-second takeaway
For the quarter ended March 31 (Q2), Zoltek Companies whiffed on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue dropped significantly. GAAP earnings per share dropped.
Gross margins dropped, operating margins dropped, net margins increased.
Zoltek Companies reported revenue of $33.3 million. The two analysts polled by S&P Capital IQ expected to see revenue of $37.5 million on the same basis. GAAP reported sales were 29% lower than the prior-year quarter's $47.0 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 $0.09. The two earnings estimates compiled by S&P Capital IQ predicted $0.10 per share. GAAP EPS of $0.09 for Q2 were 10% lower than the prior-year quarter's $0.10 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 21.1%, 220 basis points worse than the prior-year quarter. Operating margin was 5.1%, 700 basis points worse than the prior-year quarter. Net margin was 9.9%, 280 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $40.0 million. On the bottom line, the average EPS estimate is $0.12.
Next year's average estimate for revenue is $156.4 million. The average EPS estimate is $0.44.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 719 members out of 763 rating the stock outperform, and 44 members rating it underperform. Among 140 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 127 give Zoltek Companies a green thumbs-up, and 13 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Zoltek Companies is hold, with an average price target of $10.50.
Looking for alternatives to Zoltek Companies? It takes more than great companies to build a fortune for the future. Learn the basic financial habits of millionaires next door and get focused stock ideas in our free report, "3 Stocks That Will Help You Retire Rich." Click here for instant access to this free report.
- Add Zoltek Companies to My Watchlist.
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.
More from The Motley Fool
Don't Get Too Worked Up Over Zoltek Companies's Latest Numbers
Don't just ask, "How much inventory?" Ask, "What kind?"
Is Zoltek About to Fall Back to Earth?
There may be good reason for shares to remain at current levels, even after the failed acquisition attempt.
Does The Street Have Zoltek Companies Figured Out?