The 10-second takeaway
For the quarter ended June 30 (Q2), HFF beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly. GAAP earnings per share grew significantly.
Gross margins expanded, operating margins dropped, net margins contracted.
HFF recorded revenue of $81.0 million. The two analysts polled by S&P Capital IQ looked for revenue of $76.1 million on the same basis. GAAP reported sales were 21% higher than the prior-year quarter's $66.8 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 $0.35. The one earnings estimate compiled by S&P Capital IQ forecast $0.33 per share. GAAP EPS of $0.35 for Q2 were 21% higher than the prior-year quarter's $0.29 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 42.5%, 700 basis points better than the prior-year quarter. Operating margin was 19.0%, 240 basis points worse than the prior-year quarter. Net margin was 16.2%, 10 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $85.8 million. On the bottom line, the average EPS estimate is $0.35.
Next year's average estimate for revenue is $319.1 million. The average EPS estimate is $1.19.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 22 members out of 45 rating the stock outperform, and 23 members rating it underperform. Among 14 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), seven give HFF a green thumbs-up, and seven give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on HFF is buy, with an average price target of $21.00.
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