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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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 owns shares of RailAmerica. 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.