Will These Numbers from Diamond Hill Investment Group Be Good Enough for You?

Diamond Hill Investment Group (NAS: DHIL) is expected to report Q4 earnings around Feb. 24. 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 Diamond Hill Investment Group's revenues will expand 8.0% and EPS will contract -5.4%.

The average estimate for revenue is $16.4 million. On the bottom line, the average EPS estimate is $1.41.


Revenue details
Last quarter, Diamond Hill Investment Group tallied revenue of $16.9 million. GAAP reported sales were 9.7% higher than the prior-year quarter's $15.4 million.

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

EPS details
Last quarter, EPS came in at $1.32. GAAP EPS of $1.32 for Q3 were 57% higher than the prior-year quarter's $0.84 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 44.7%, 60 basis points better than the prior-year quarter. Operating margin was 35.8%, 40 basis points better than the prior-year quarter. Net margin was 24.7%, 820 basis points better than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $66.0 million. The average EPS estimate is $5.39.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 176 members out of 183 rating the stock outperform, and seven members rating it underperform. Among 58 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 56 give Diamond Hill Investment Group a green thumbs-up, and two give it a red thumbs-down.

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The article Will These Numbers from Diamond Hill Investment Group Be Good Enough for You? 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 free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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