Will Zipcar Beat These Analyst Estimates? (ZIP)

Will Zipcar Beat These Analyst Estimates?

Zipcar (Nasdaq: ZIP ) is expected to report Q2 earnings on Thursday. 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 Zipcar's revenues will increase 18.6% and EPS will drop 100%.

The average estimate for revenue is $73 million. On the bottom line, the average EPS estimate is $0.00.

Revenue details
Last quarter, Zipcar booked revenue of $59.1 million. GAAP reported sales were 20% higher than the prior-year quarter's $49.1 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 -$0.08. GAAP EPS were -$0.08 for Q1 against -$0.95 per share for the prior-year quarter.

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 32.8%, 400 basis points better than the prior-year quarter. Operating margin was -3%, 640 basis points better than the prior-year quarter. Net margin was -5.2%, 720 basis points better than the prior-year quarter.

Looking ahead
The full year's average estimate for revenue is $290.9 million. The average EPS estimate is $0.13.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 864 members rating the stock outperform and 80 members rating it underperform. Among 243 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 219 give Zipcar a green thumbs-up, and 24 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Zipcar is outperform, with an average price target of $19.58.

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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 owns shares of Zipcar. Motley Fool newsletter services recommend Zipcar. 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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