The 10-second takeaway
For the quarter ended Dec. 31 (Q4), RSC Holdings beat expectations on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly, and GAAP earnings per share expanded.
Margins expanded across the board.
RSC Holdings logged revenue of $420.8 million. The nine analysts polled by S&P Capital IQ wanted to see sales of $403.4 million. Sales were 24% higher than the prior-year quarter's $338.9 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $0.08. The 16 earnings estimates compiled by S&P Capital IQ averaged $0.09 per share on the same basis. GAAP EPS were $0.15 for Q4 compared to -$0.07 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 50.7%, 2,390 basis points better than the prior-year quarter. Operating margin was 17.2%, 660 basis points better than the prior-year quarter. Net margin was 1.1%, 320 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $389.7 million. On the bottom line, the average EPS estimate is $0.00.
Next year's average estimate for revenue is $1.73 billion. The average EPS estimate is $0.77.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 79 members out of 89 rating the stock outperform, and 10 members rating it underperform. Among 29 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 28 give RSC Holdings a green thumbs-up, and one give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on RSC Holdings is hold, with an average price target of $14.41.
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