WMS Industries Misses on Both Revenue and Earnings

WMS Industries (NYSE: WMS  ) reported earnings on Feb. 6. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q2), WMS Industries missed estimates on revenues and missed estimates on earnings per share.

Compared to the prior-year quarter, revenue dropped slightly and GAAP earnings per share shrank significantly.

Gross margins grew, operating margins shrank, net margins contracted.

Revenue details
WMS Industries logged revenue of $157.5 million. The 12 analysts polled by S&P Capital IQ anticipated a top line of $165.7 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 details
EPS came in at $0.15. The 14 earnings estimates compiled by S&P Capital IQ predicted $0.16 per share. GAAP EPS of $0.08 for Q2 were 72% lower 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.

Margin details
For the quarter, gross margin was 63.9%, 280 basis points better than the prior-year quarter. Operating margin was 4.4%, 850 basis points worse than the prior-year quarter. Net margin was 2.7%, 720 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $184.5 million. On the bottom line, the average EPS estimate is $0.30.

Next year's average estimate for revenue is $710.2 million. The average EPS estimate is $1.01.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 171 members out of 196 rating the stock outperform, and 25 members rating it underperform. Among 57 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 50 give WMS Industries 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 WMS Industries is hold, with an average price target of $17.53.

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