On Nov. 7, Motley Fool Rule Breakers pick Headwaters
- Investors got a mixed bag in Q4. Per-share earnings easily beat estimates thanks to fewer shares on the books, but sales fell well short of projections despite a boost from lower oil prices.
- Net profit declined 38% year over year, due primarily to the phase-out of alternative energy tax credits specified by Section 45K of the Internal Revenue Code.
- Margins, too, took a beating. But it was operating margin that suffered the most, down more than 6% from last year's Q4.
- For a look at Headwaters' full-year earnings results, click here.
(Figures in thousands, except per-share data)
Income Statement Highlights
Avg. Est. |
Q4 2006 |
Q4 2005 |
Change |
|
---|---|---|---|---|
Sales |
$281,850 |
$275,226 |
$315,102 |
(12.7%) |
Net Profit |
-- |
$27,954 |
$44,877 |
(37.7%) |
EPS |
$0.48 |
$0.61 |
$0.95 |
(35.8%) |
Diluted Shares |
-- |
48,286 |
48,717 |
(0.9%) |
Get back to basics with a look at the income statement.
Margin Checkup
Q4 2006 |
Q4 2005 |
Change* |
|
---|---|---|---|
Gross Margin |
32.33% |
35.51% |
(3.18) |
Operating Margin |
16.19% |
22.29% |
(6.10) |
Net Margin |
10.16% |
14.24% |
(4.08) |
Margins are the earnings engine. See how they work.
Balance Sheet Highlights
Assets |
Q4 2006 |
Q4 2005 |
Change |
---|---|---|---|
Cash + ST Invest. |
$79,151 |
$13,666 |
479.2% |
Accounts Rec. |
$131,608 |
$174,127 |
(24.4%) |
Inventory |
$62,519 |
$60,519 |
3.3% |
Liabilities |
Q4 2006 |
Q4 2005 |
Change |
---|---|---|---|
Accounts Payable |
$23,854 |
$43,857 |
(45.6%) |
Long-Term Debt |
$587,820 |
$601,811 |
(2.3%) |
Learn the ways of the balance sheet.
Cash Flow Checkup
No cash flow statement provided. (Whatever.)
Find out why Fools always follow the money.
Related Companies:
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Arch Coal
(NYSE:ACI) -
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Cemex
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Foundation Coal
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Lafarge North America
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Nalco
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Related Foolishness:
- Check out the numbers from last quarter.
- And Q2.
- Take that, Headwaters!
Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean.
Headwaters is one of dozens in a market-beating Rule Breakers portfolio that features five stocks that have at least doubled in price. Want to find out who they are? Try out 30 days of free access to the service.
Fool contributor Tim Beyers didn't own shares in any of the companies mentioned in this story at the time of publication. You can find out which other stocks he owns by checking Tim's Fool profile. The Motley Fool's disclosure policy always adds up.