AAON Whiffs on Revenue

AAON (Nasdaq: AAON  ) reported earnings on March 14. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), AAON whiffed on revenue and missed estimates on earnings per share.

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

Margins dropped across the board.

Revenue details
AAON notched revenue of $63.4 million. The two analysts polled by S&P Capital IQ predicted revenue of $72.1 million on the same basis. GAAP reported sales were 3.7% lower than the prior-year quarter's $65.8 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Non-GAAP EPS came in at $0.04. The two earnings estimates compiled by S&P Capital IQ anticipated $0.21 per share on the same basis. GAAP EPS of $0.03 for Q4 were 88% lower than the prior-year quarter's $0.24 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 13.6%, 800 basis points worse than the prior-year quarter. Operating margin was 4.8%, 770 basis points worse than the prior-year quarter. Net margin was 1.4%, 740 basis points worse than the prior-year quarter.

Looking ahead
On the bottom line, the average EPS estimate is $0.20.

Next year's average estimate for revenue is $297.4 million. The average EPS estimate is $0.84.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS. Among 91 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), all 91 give AAON a green thumbs-up.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on AAON is hold, with an average price target of $17.00.

Over the decades, small-cap stocks like AAON have provided market-beating returns, provided they're value-priced and have solid businesses. Read about a pair of companies with a lock on their markets in "Too Small to Fail: Two Small Caps the Government Won't Let Go Broke." Click here for instant access to this free report.

• Add AAON to My Watchlist.