The 10-second takeaway
For the quarter ended June 30 (Q2), Barnes Group met expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped. Non-GAAP earnings per share grew. GAAP earnings per share grew significantly.
Gross margins shrank, operating margins expanded, net margins expanded.
Barnes Group reported revenue of $267.4 million. The five analysts polled by S&P Capital IQ hoped for sales of $270.2 million on the same basis. GAAP reported sales were 8.9% lower than the prior-year quarter's $293.4 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 $0.47. The six earnings estimates compiled by S&P Capital IQ averaged $0.47 per share. Non-GAAP EPS of $0.47 for Q2 were 4.4% higher than the prior-year quarter's $0.45 per share. GAAP EPS of $3.82 for Q2 were much higher than the prior-year quarter's $0.45 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%, 50 basis points worse than the prior-year quarter. Operating margin was 13.5%, 190 basis points better than the prior-year quarter. Net margin was 78.3%, much better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $279.9 million. On the bottom line, the average EPS estimate is $0.52.
Next year's average estimate for revenue is $1.09 billion. The average EPS estimate is $1.91.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 443 members out of 479 rating the stock outperform, and 36 members rating it underperform. Among 122 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 116 give Barnes Group a green thumbs-up, and six give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Barnes Group is outperform, with an average price target of $32.20.
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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.