The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Forward Air met expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded, and GAAP earnings per share improved significantly.
Margins increased across the board.
Forward Air reported revenue of $148.3 million. The 10 analysts polled by S&P Capital IQ expected revenue of $150.3 million on the same basis. GAAP reported sales were 11% higher than the prior-year quarter's $133.3 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.50. The 12 earnings estimates compiled by S&P Capital IQ anticipated $0.50 per share. GAAP EPS of $0.50 for Q4 were 22% higher than the prior-year quarter's $0.41 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 27.5%, 80 basis points better than the prior-year quarter. Operating margin was 15.9%, 140 basis points better than the prior-year quarter. Net margin was 9.7%, 80 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $130.9 million. On the bottom line, the average EPS estimate is $0.34.
Next year's average estimate for revenue is $580.8 million. The average EPS estimate is $1.83.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 109 members rating the stock outperform and 12 members rating it underperform. Among 34 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 32 give Forward Air a green thumbs-up, and two give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Forward Air is outperform, with an average price target of $34.38.
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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.