AAON Earnings: Here’s Why the Stock is Up Now

AAON Inc. (NASDAQ:AAON) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 0.34%.

AAON Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 32% to $0.33 in the quarter versus EPS of $0.25 in the year-earlier quarter.

Revenue: Rose 9.44% to $91.2 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: AAON Inc. reported adjusted EPS income of $0.33 per share. By that measure, the company beat the mean analyst estimate of $0.27. It beat the average revenue estimate of $0.

Quoting Management: Norman H. Asbjornson, President and CEO, stated, “The second quarter increases in sales and income from operations primarily reflect price increases and a decline in cost of materials; gross profit as a percent of sales increased 5% (from 25.3% to 30.3%), but SG&A expenses as a percent of sales also increased 1.7% (from 8.3% to 10.0%), the majority of which (SG&A) represents increases in “profit sharing” and warranty expense.”

Key Stats (on next page)…

Revenue increased 36.47% from $66.83 million in the previous quarter. EPS increased 120% from $0.15 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.26 and has not changed. For the current year, the average estimate has moved up from a profit of $0.83 to a profit of $0.88 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)