The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Pacer International missed estimates on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped and GAAP earnings per share expanded.
Margins improved across the board.
Pacer International recorded revenue of $358.0 million. The seven analysts polled by S&P Capital IQ expected revenue of $366.1 million. GAAP sales were 4.1% lower than the prior-year quarter's $373.3 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 $0.07. The nine earnings estimates compiled by S&P Capital IQ anticipated $0.07 per share on the same basis. GAAP EPS were $0.03 for Q4 compared to -$0.03 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 11.5%, 20 basis points better than the prior-year quarter. Operating margin was 1.2%, 30 basis points better than the prior-year quarter. Net margin was 0.3%, 60 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $361.2 million. On the bottom line, the average EPS estimate is $0.05.
Next year's average estimate for revenue is $1.53 billion. The average EPS estimate is $0.39.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 305 members out of 330 rating the stock outperform, and 25 members rating it underperform. Among 109 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 102 give Pacer International 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 Pacer International is hold, with an average price target of $7.08.
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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 Pacer International. The Fool owns shares of and has written puts on Pacer International. 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.