The 10-second takeaway
For the quarter ended Dec. 31 (Q2), Celadon Group missed on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue grew and earnings per share improved significantly.
Margins grew across the board.
Celadon Group booked revenue of $141.5 million. The seven analysts polled by S&P Capital IQ expected to see a top line of $147.1 million. Sales were 6.3% higher than the prior-year quarter's $133.1 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
EPS came in at $0.24. The eight earnings estimates compiled by S&P Capital IQ averaged $0.19 per share. GAAP EPS of $0.24 for Q2 were 85% higher than the prior-year quarter's $0.13 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 16.4%, 140 basis points better than the prior-year quarter. Operating margin was 6.0%, 180 basis points better than the prior-year quarter. Net margin was 3.8%, 170 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $147.5 million. On the bottom line, the average EPS estimate is $0.17.
Next year's average estimate for revenue is $591.2 million. The average EPS estimate is $0.89.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 129 members out of 147 rating the stock outperform, and 18 members rating it underperform. Among 47 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 40 give Celadon Group a green thumbs-up, and seven give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Celadon Group is buy, with an average price target of $16.56.
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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. 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.