The 10-second takeaway
For the quarter ended May 31 (Q1), Ennis missed estimates on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped slightly. GAAP earnings per share grew significantly.
Margins grew across the board.
Ennis booked revenue of $138.5 million. The two analysts polled by S&P Capital IQ predicted a top line of $143.9 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 $0.33. The two earnings estimates compiled by S&P Capital IQ predicted $0.33 per share. GAAP EPS of $0.33 for Q1 were 120% higher than the prior-year quarter's $0.15 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 25.9%, 610 basis points better than the prior-year quarter. Operating margin was 9.8%, 540 basis points better than the prior-year quarter. Net margin was 6.1%, 340 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $143.2 million. On the bottom line, the average EPS estimate is $0.41.
Next year's average estimate for revenue is $551.3 million. The average EPS estimate is $1.44.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 135 members out of 139 rating the stock outperform, and four members rating it underperform. Among 44 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 43 give Ennis a green thumbs-up, and one give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Ennis is outperform, with an average price target of $19.50.
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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.