Diamond Hill Investment Group Crushes Estimates

Diamond Hill Investment Group (Nasdaq: DHIL  ) reported earnings on Feb. 24. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Diamond Hill Investment Group beat expectations on revenues and crushed expectations on earnings per share.

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

Gross margins dropped, operating margins improved, and net margins increased.

Revenue details
Diamond Hill Investment Group reported revenue of $15.2 million. The one analyst polled by S&P Capital IQ looked for a top line of $13.1 million on the same basis. GAAP reported sales were 2.1% lower than the prior-year quarter's $15.5 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 $1.49. The one earnings estimate compiled by S&P Capital IQ averaged $0.88 per share. GAAP EPS of $1.49 for Q4 were 6.3% lower than the prior-year quarter's $1.59 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 41.6%, 660 basis points worse than the prior-year quarter. Operating margin was 41.6%, 140 basis points better than the prior-year quarter. Net margin was 29.3%, 50 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $12.4 million. On the bottom line, the average EPS estimate is $0.91.

Next year's average estimate for revenue is $48.4 million. The average EPS estimate is $3.71.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 179 members out of 187 rating the stock outperform, and eight members rating it underperform. Among 69 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 67 give Diamond Hill Investment Group a green thumbs-up, and two give it a red thumbs-down.

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