The 10-second takeaway
For the quarter ended Dec. 31 (Q4), RailAmerica beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share dropped.
Gross margins grew, operating margins shrank, net margins dropped.
RailAmerica recorded revenue of $139.7 million. The 10 analysts polled by S&P Capital IQ expected revenue of $137.7 million. GAAP sales were 15% higher than the prior-year quarter's $127.6 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.24. The 11 earnings estimates compiled by S&P Capital IQ predicted $0.22 per share on the same basis. GAAP EPS of $0.29 for Q3 were 12% lower than the prior-year quarter's $0.33 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 68.9%, 5,920 basis points better than the prior-year quarter. Operating margin was 27.0%, 2,070 basis points worse than the prior-year quarter. Net margin was 10.2%, 380 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $137.4 million. On the bottom line, the average EPS estimate is $0.21.
Next year's average estimate for revenue is $541.4 million. The average EPS estimate is $0.79.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 91 members out of 94 rating the stock outperform, and three members rating it underperform. Among 25 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 25 give RailAmerica a green thumbs-up, and give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on RailAmerica is outperform, with an average price target of $16.91.
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