The 10-second takeaway
For the quarter ended April 30 (Q1), Raven Industries missed estimates on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue dropped. GAAP earnings per share contracted significantly.
Margins dropped across the board.
Raven Industries booked revenue of $103.7 million. The one analyst polled by S&P Capital IQ looked for revenue of $112.6 million on the same basis. GAAP reported sales were 12% lower than the prior-year quarter's $117.9 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 $0.38. The one earnings estimate compiled by S&P Capital IQ forecast $0.44 per share. GAAP EPS of $0.38 for Q1 were 27% lower than the prior-year quarter's $0.52 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 33.7%, 120 basis points worse than the prior-year quarter. Operating margin was 20.2%, 390 basis points worse than the prior-year quarter. Net margin was 13.5%, 260 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $90.7 million. On the bottom line, the average EPS estimate is $0.27.
Next year's average estimate for revenue is $372.5 million. The average EPS estimate is $1.23.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 467 members out of 483 rating the stock outperform, and 16 members rating it underperform. Among 143 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 141 give Raven Industries a green thumbs-up, and two give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Raven Industries is outperform, with an average price target of $34.00.
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