Republic Airways Holdings
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Republic Airways Holdings met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased and GAAP loss per share expanded.
Gross margins dropped, operating margins grew, and net margins dropped.
Republic Airways Holdings tallied revenue of $697.8 million. The seven analysts polled by S&P Capital IQ expected to see revenue of $700.9 million on the same basis. GAAP reported sales were 7.4% higher than the prior-year quarter's $649.8 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 $0.34. The eight earnings estimates compiled by S&P Capital IQ forecast $0.32 per share on the same basis. GAAP EPS were -$2.55 for Q4 compared to -$0.02 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 29.7%, 110 basis points worse than the prior-year quarter. Operating margin was 3.6%, 120 basis points better than the prior-year quarter. Net margin was -17.7%, 1,750 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $672.3 million. On the bottom line, the average EPS estimate is -$0.13.
Next year's average estimate for revenue is $2.77 billion. The average EPS estimate is $0.71.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 295 members out of 343 rating the stock outperform, and 48 members rating it underperform. Among 108 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 94 give Republic Airways Holdings a green thumbs-up, and 14 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Republic Airways Holdings is outperform, with an average price target of $6.83.
Over the decades, small-cap stocks like Republic Airways Holdings 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 Republic Airways Holdings to My Watchlist.
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.
More from The Motley Fool
Why Republic Airways' Bankruptcy Won't Hurt Embraer
Mainline carriers still want Embraer E175s for their regional fleets, so Republic Airways is likely to hang on to its orders with Embraer.
Why Republic Airways Holdings Inc. Shares Fell 26% in November
The regional airline pilot shortage will remain a problem for the foreseeable future.
Republic Airways Holdings Inc. Remains Full of Risk
The regional airline has dodged one bullet, but this turnaround stock is still too hot to handle.