On May 1, diversified nanotech and alternative energy player Headwaters (NYSE:HW) released second-quarter earnings for the period ended March 31.
- A slowdown in new home construction harmed the construction materials segment, but that was offset by strong showings in the synthetic fuel business and the coal combustion segment.
- For a more detailed look at this Rule Breakers recommendation, be sure to read Jack Uldrich's Take on Headwaters' earnings.
- The stock rates an above-average four stars in Motley Fool CAPS.
(Figures in millions, except per-share data.)
Income Statement Highlights
|
Q2 2007 |
Q2 2006 |
Change | |
|---|---|---|---|
|
Sales |
$274.1 |
$269.7 |
1.6% |
|
Net Profit |
$27.2 |
$18.4 |
47.8% |
|
EPS |
$0.59 |
$0.40 |
47.5% |
|
Diluted Shares |
48.4 |
48.9 |
(1.1%) |
Get back to basics with the income statement.
Margin Checkup
|
Q2 2007 |
Q2 2006 |
Change* | |
|---|---|---|---|
|
Gross Margin |
34.4% |
29.5% |
5.0 |
|
Operating Margin |
16.6% |
14% |
2.6 |
|
Net Margin |
9.9% |
6.8% |
3.1 |
*Expressed in percentage points.
Margins are the earnings engine.
Balance Sheet Highlights
|
Assets |
Q2 2007 |
Q2 2006 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$29.3 |
$56.8 |
(48.4%) |
|
Accounts Rec. |
$150.2 |
$127.5 |
17.8% |
|
Inventory |
$64.7 |
$68.2 |
(5.1%) |
|
Liabilities |
Q2 2007 |
Q2 2006 |
Change |
|---|---|---|---|
|
Accounts Payable |
$31.3 |
$32.0 |
(2.3%) |
|
Long-Term Debt |
$595.0 |
$587.8 |
1.2% |
The balance sheet reflects the company's health.
Cash Flow Highlights
No data; management fails us again.
Free cash flow is a Fool's best friend.
Related Foolishness:
Keep tabs on big events in tiny technology with a free 30-day trial to David Gardner's
Motley Fool Rule Breakers.
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. This data has been provided by Netscribes. To provide feedback on this article, please click on the "feedback" button below.
