Tag Archives: AAON

Business, Finance, Occupation & Industry

Why AAON May Be About to Take Off

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By Seth Jayson, The Motley Fool

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Here at The Motley Fool, I’ve long cautioned investors to keep a close eye on inventory levels. It’s a part of my standard diligence when searching for the market’s best stocks. I think a quarterly checkup can help you spot potential problems. For many companies, products that sit on the shelves too long can become big trouble. Stale inventory may be sold for lower prices, hurting profitability. In extreme cases, it may be written off completely and sent to the shredder.

Basic guidelines
 In this series, I examine inventory using a simple rule of thumb: Inventory increases ought to roughly parallel revenue increases. If inventory bloats more quickly than sales grow, this might be a sign that expected sales haven’t materialized. Is the current inventory situation at AAON (NAS: AAON) out of line? To figure that out, start by comparing the company’s inventory growth to sales growth. How is AAON doing by this quick checkup? At first glance, pretty well. Trailing-12-month revenue increased 13.9%, and inventory decreased 6.7%. Comparing the latest quarter to the prior-year quarter, the story looks decent. Revenue grew 23.0%, and inventory shrank 6.7%. Over the sequential quarterly period, the trend looks healthy. Revenue grew 1.6%, and inventory dropped 13.4%.

Advanced inventory

I don’t stop my checkup there, because the type of inventory can matter even more than the overall quantity. There’s even one type of inventory bulge we sometimes like to see. You can check for it by examining the quarterly filings to evaluate the different kinds of inventory: raw materials, work-in-progress inventory, and finished goods. (Some companies report the first two types as a single category.)

A company ramping up for increased demand may increase raw materials and work-in-progress inventory at a faster rate when it expects robust future growth. As such, we might consider oversized growth in those categories to offer a clue to a brighter future, and a clue that most other investors will miss. We call it “positive inventory divergence.”

On the other hand, if we see a big increase in finished goods, that often means product isn’t moving as well as expected, and it’s time to hunker down with the filings and conference calls to find out why.

What’s going on with the inventory at AAON? I chart the details below for both quarterly and 12-month periods.

Source: S&P Capital IQ. Data is current as of latest fully reported quarter. Dollar amounts in millions. FY = fiscal year. TTM = trailing 12 months.

Source: S&P …read more
Source: FULL ARTICLE at DailyFinance

Business, Finance, Occupation & Industry

AAON Beats on Both Top and Bottom Lines

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By Seth Jayson, The Motley Fool

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AAON (NAS: 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 beat expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue increased significantly. GAAP earnings per share grew significantly.

Margins increased across the board.

Revenue details
 AAON reported revenue of $78.0 million. The two analysts polled by S&P Capital IQ looked for revenue of $69.4 million on the same basis. GAAP reported sales were 23% higher than the prior-year quarter’s $63.4 million.

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 $0.31. The two earnings estimates compiled by S&P Capital IQ predicted $0.23 per share. GAAP EPS of $0.31 for Q4 were much higher than the prior-year quarter’s $0.03 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 24.0%, much better than the prior-year quarter. Operating margin was 15.5%, much better than the prior-year quarter. Net margin was 9.7%, 830 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
 Next quarter’s average estimate for revenue is $65.0 million. On the bottom line, the average EPS estimate is $0.19.

Next year’s average estimate for revenue is $308.5 million. The average EPS estimate is $1.16.

Investor sentiment
 The stock has a five-star rating (out of five) at Motley Fool CAPS, with 265 members out of 278 rating the stock outperform, and 13 members rating it underperform. Among 82 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 82 give AAON a green thumbs-up, and give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on AAON is hold, with an average price target of $21.00.

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The article AAON Beats on Both Top and Bottom Lines originally appeared on Fool.com.


Seth Jayson had no position in any company mentioned here at the time of publication. You …read more
Source: FULL ARTICLE at DailyFinance

Business, Finance, Occupation & Industry

Dow May Open Higher as S&P 500 Nears 2007 High

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By Roland Head, The Motley Fool

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LONDON — After closing at a record high for the last nine days, can the Dow extend the streak to 10? Stock index futures at 7 a.m. EDT indicate that the Dow Jones Industrial Average may open up by 0.12% this morning, while the S&P 500 may open 0.16% higher, bringing it to within 20 points of its October 2007 intraday high of 1,576.09.

Yesterday’s five-point closing gain for the Dow Jones may suggest that the bull run is slowing, but today’s economic data could provide a further boost if it comes in ahead of expectations. At 8:30 a.m. EDT, the latest weekly jobless-claims figures are due, with consensus forecasts suggesting 350,000 new claims from March 3 to March 9, up slightly from 340,000 the previous week. Also due at 8:30 a.m. EDT is February’s producer price index, which is expected to show a rise of 0.8%, up from 0.2% in January.

In corporate news, companies expected to report earnings before markets open include AAON, Diana Shipping, Dynegy, and Ebix, while Krispy Kreme Doughnuts, and Molycorp are expected to report results after the closing bell tonight.

Stocks that may be actively traded include Blackberry after the company reported that it had received a 1 million-unit order for its Blackberry 10 phone from an unnamed partner. Blackberry stock was up 2.6% in premarket trading. Meanwhile, Apple may also be in focus as competitor Samsung launches its latest Galaxy smartphone in New York later today. Finally, E*TRADE may sink after a major shareholder said it planned to sell its entire stake in the company, whose stock was down 4.6% in premarket trading.

European markets
Markets edged higher in Europe this morning as investors welcomed the growing strength of the U.S. recovery and were encouraged by a draft statement from today’s EU leaders’ summit, which indicated that they may consider extending deficit-reduction deadlines for countries including Spain, Portugal, and France.

At 7:40 a.m. EDT, the DAX was up 0.69%, the CAC 40 was up 0.62%, the FTSE MIB was up 1.36%, and the IBEX 35 was up 1%. In London, the FTSE 100 was 0.33% higher, helped by a 6.2% gain for temporary-power specialist Aggreko, which announced a 122 MW new contract to supply power to Mozambique and Namibia as part of the cross-border Southern Africa Power Pool project. Wm. Morrison Supermarkets was also higher after announcing that it will move into online retailing in 2014 through a joint venture with online-only supermarket Ocado.

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Source: FULL ARTICLE at DailyFinance

Business, Finance, Occupation & Industry

Can AAON Meet These Numbers?

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By Seth Jayson, The Motley Fool

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AAON (NAS: AAON) is expected to report Q4 earnings around March 13. Here’s what Wall Street wants to see:

The 10-second takeaway
 Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict AAON‘s revenues will expand 9.5% and EPS will grow 475.0%.

The average estimate for revenue is $69.4 million. On the bottom line, the average EPS estimate is $0.23.

Revenue details
 Last quarter, AAON booked revenue of $76.8 million. GAAP reported sales were 4.0% higher than the prior-year quarter’s $73.8 million.

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

EPS details
 Last quarter, EPS came in at $0.24. GAAP EPS of $0.24 for Q3 were 4.3% higher than the prior-year quarter’s $0.23 per share.

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

Recent performance
 For the preceding quarter, gross margin was 22.3%, 300 basis points better than the prior-year quarter. Operating margin was 13.5%, 160 basis points better than the prior-year quarter. Net margin was 7.8%, 20 basis points better than the prior-year quarter.

Looking ahead

The full year’s average estimate for revenue is $294.5 million. The average EPS estimate is $1.02.

Investor sentiment
 The stock has a five-star rating (out of five) at Motley Fool CAPS, with 265 members out of 278 rating the stock outperform, and 13 members rating it underperform. Among 84 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 84 give AAON a green thumbs-up, and give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on AAON is hold, with an average price target of $19.00.

Looking for alternatives to AAON? It takes more than great companies to build a fortune for the future. Learn the basic financial habits of millionaires next door and get focused stock ideas in our free report, “3 Stocks That Will Help You Retire Rich.” Click here for instant access to this free report.

The article Can AAON Meet These Numbers? originally appeared on Fool.com.


Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services …read more
Source: FULL ARTICLE at DailyFinance