World Fuel Services
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), World Fuel Services missed estimates on revenue and met expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share expanded significantly.
Gross margin increased, operating margin dropped, and net margin contracted.
World Fuel Services booked revenue of $9.32 billion. The five analysts polled by S&P Capital IQ predicted a top line of $9.56 billion on the same basis. GAAP reported sales were 60% higher than the prior-year quarter's $5.83 billion.
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 $0.70. The six earnings estimates compiled by S&P Capital IQ anticipated $0.70 per share on the same basis. GAAP EPS of $0.69 for Q4 were 23% higher than the prior-year quarter's $0.56 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 -0.6%, 10 basis points better than the prior-year quarter. Operating margin was 0.7%, 10 basis points worse than the prior-year quarter. Net margin was 0.5%, 20 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $9.62 billion. On the bottom line, the average EPS estimate is $0.69.
Next year's average estimate for revenue is $41.26 billion. The average EPS estimate is $3.01.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 311 members out of 327 rating the stock outperform, and 16 members rating it underperform. Among 86 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 83 give World Fuel Services a green thumbs-up, and three give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on World Fuel Services is buy, with an average price target of $47.40.
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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.