The 10-second takeaway
For the quarter ended June 30 (Q2), Zipcar missed estimates on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue improved significantly and GAAP loss per share dropped.
Margins improved across the board.
Zipcar tallied revenue of $70.8 million. The eight analysts polled by S&P Capital IQ predicted sales of $73.0 million on the same basis. GAAP reported sales were 15% higher than the prior-year quarter's $61.6 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at -$0.01. The five earnings estimates compiled by S&P Capital IQ anticipated $0.00 per share. GAAP EPS were -$0.01 for Q2 against -$0.17 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 38.0%, 380 basis points better than the prior-year quarter. Operating margin was 1.0%, 50 basis points better than the prior-year quarter. Net margin was -0.6%, 840 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $81.5 million. On the bottom line, the average EPS estimate is $0.08.
Next year's average estimate for revenue is $290.9 million. The average EPS estimate is $0.13.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 865 members out of 946 rating the stock outperform, and 81 members rating it underperform. Among 239 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 214 give Zipcar a green thumbs-up, and 25 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 $16.86.
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