Platinum Underwriters Holdings
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Platinum Underwriters Holdings whiffed on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped and GAAP earnings per share expanded.
Gross margins dropped, operating margins increased, and net margins increased.
Platinum Underwriters Holdings chalked up revenue of $153.7 million. The three analysts polled by S&P Capital IQ anticipated net sales of $175.4 million. Sales were 14% lower than the prior-year quarter's $162.0 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $0.58. The five earnings estimates compiled by S&P Capital IQ predicted $0.34 per share on the same basis. GAAP EPS were $0.19 for Q4 compared to -$0.46 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 12.5%, 50 basis points worse than the prior-year quarter. Operating margin was 4.8%, 150 basis points better than the prior-year quarter. Net margin was 3.9%, 1,220 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $187.2 million. On the bottom line, the average EPS estimate is $1.17.
Next year's average estimate for revenue is $699.1 million. The average EPS estimate is $4.24.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 114 members out of 118 rating the stock outperform, and four members rating it underperform. Among 37 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 37 give Platinum Underwriters Holdings a green thumbs-up.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Platinum Underwriters Holdings is hold, with an average price target of $36.40.
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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.