Genesee & Wyoming Misses on Both Revenue and Earnings

Genesee & Wyoming (NYSE: GWR  ) reported earnings on May 1. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), Genesee & Wyoming missed slightly on revenues and missed estimates on earnings per share.

Compared to the prior-year quarter, revenue expanded significantly. Non-GAAP earnings per share increased significantly. GAAP earnings per share grew significantly.

Gross margins contracted, operating margins grew, net margins increased.

Revenue details
Genesee & Wyoming logged revenue of $375.2 million. The 12 analysts polled by S&P Capital IQ predicted revenue of $382.8 million on the same basis. GAAP reported sales were 81% higher than the prior-year quarter's $207.4 million.

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

EPS details
EPS came in at $0.87. The 15 earnings estimates compiled by S&P Capital IQ predicted $0.89 per share. Non-GAAP EPS of $0.87 for Q1 were 67% higher than the prior-year quarter's $0.52 per share. GAAP EPS of $1.46 for Q1 were 181% higher than the prior-year quarter's $0.52 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 20.3%, much worse than the prior-year quarter. Operating margin was 20.3%, 100 basis points better than the prior-year quarter. Net margin was 22.0%, much better than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $407.4 million. On the bottom line, the average EPS estimate is $1.13.

Next year's average estimate for revenue is $1.63 billion. The average EPS estimate is $4.65.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 927 members out of 954 rating the stock outperform, and 27 members rating it underperform. Among 296 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 292 give Genesee & Wyoming a green thumbs-up, and four give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Genesee & Wyoming is outperform, with an average price target of $96.07.

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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 recommends Genesee & Wyoming. 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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