The 10-second takeaway
For the quarter ended Dec. 31 (Q3), Ryanair Holdings beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly and GAAP earnings per share increased. The non-GAAP profit was a surprise, as analysts had predicted a loss.
Gross margins dropped, operating margins increased, net margins expanded.
Ryanair Holdings recorded revenue of $1.28 billion. The five analysts polled by S&P Capital IQ wanted to see a top line of $1.19 billion on the same basis. GAAP reported sales were 16% higher than the prior-year quarter's $1.10 billion.
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 $0.08. The one earnings estimate compiled by S&P Capital IQ predicted -$0.08 per share. GAAP EPS of $0.02 for Q3 were 100% higher than the prior-year quarter's $0.01 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 16.4%, 100 basis points worse than the prior-year quarter. Operating margin was 3.6%, 10 basis points better than the prior-year quarter. Net margin was 1.9%, 10 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $1.08 billion. On the bottom line, the average EPS estimate is -$0.28.
Next year's average estimate for revenue is $6.47 billion. The average EPS estimate is $2.35.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 147 members out of 175 rating the stock outperform, and 28 members rating it underperform. Among 53 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 44 give Ryanair Holdings a green thumbs-up, and nine give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Ryanair Holdings is outperform, with an average price target of $45.00.
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