The 10-second takeaway
For the quarter ended Dec. 31 (Q4), CAI International beat expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue improved significantly, and GAAP earnings per share improved significantly.
Margins shrank across the board.
CAI International chalked up revenue of $36.2 million. The six analysts polled by S&P Capital IQ anticipated revenue of $34.3 million on the same basis. GAAP reported sales were 44% higher than the prior-year quarter's $25.2 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 $0.66. The four earnings estimates compiled by S&P Capital IQ averaged $0.68 per share. GAAP EPS of $0.66 for Q4 were 16% higher than the prior-year quarter's $0.57 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 64.4%, 400 basis points worse than the prior-year quarter. Operating margin was 57.2%, 30 basis points worse than the prior-year quarter. Net margin was 35.6%, 600 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $35.9 million. On the bottom line, the average EPS estimate is $0.62.
Next year's average estimate for revenue is $157.9 million. The average EPS estimate is $2.82.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on CAI International is buy, with an average price target of $25.20.
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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.