The 10-second takeaway
For the quarter ended Dec. 31 (Q3), AMERCO beat expectations on revenues and earnings per share.
Compared to the prior-year quarter, revenue improved significantly and GAAP earnings per share dropped significantly.
Margins contracted across the board.
AMERCO chalked up revenue of $633.1 million. The one analyst polled by S&P Capital IQ looked for a top line of $551.0 million on the same basis. GAAP reported sales were 19% higher than the prior-year quarter's $530.0 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 $1.65. The two earnings estimates compiled by S&P Capital IQ averaged $0.81 per share on the same basis. GAAP EPS of $0.04 for Q3 were 95% lower than the prior-year quarter's $0.80 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 20.4%, 690 basis points worse than the prior-year quarter. Operating margin was 6.2%, 560 basis points worse than the prior-year quarter. Net margin was 0.1%, 340 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $507.0 million. On the bottom line, the average EPS estimate is $0.32.
Next year's average estimate for revenue is $2.40 billion. The average EPS estimate is $10.13.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 58 members out of 79 rating the stock outperform, and 21 members rating it underperform. Among 21 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 15 give AMERCO a green thumbs-up, and six give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on AMERCO is buy, with an average price target of $123.50.
Over the decades, small-cap stocks like AMERCO have produced market-beating returns, provided they're value-priced and have solid businesses. Read about a pair of companies with a lock on their markets in "Too Small to Fail: 2 Small Caps the Government Won't Let Go Broke." Click here for instant access to this free report.
- Add AMERCO to My Watchlist.