RSC Holdings
The 10-second takeaway
For the quarter ended March 31 (Q1), RSC Holdings beat expectations on revenues and exceeded expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly and GAAP earnings per share expanded.
Margins expanded across the board.
Revenue details
RSC Holdings booked revenue of $408.1 million. The eight analysts polled by S&P Capital IQ anticipated revenue of $388.5 million on the same basis. GAAP reported sales were 25% higher than the prior-year quarter's $326.9 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS details
Non-GAAP EPS came in at $0.11. The 10 earnings estimates compiled by S&P Capital IQ predicted $0.00 per share on the same basis. GAAP EPS were $0.10 for Q1 against -$0.49 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
Margin details
For the quarter, gross margin was 49.5%, 2,840 basis points better than the prior-year quarter. Operating margin was 16.6%, 1,110 basis points better than the prior-year quarter. Net margin was 2.6%, 1,800 basis points better than the prior-year quarter.
Looking ahead
Next quarter's average estimate for revenue is $427.5 million. On the bottom line, the average EPS estimate is $0.18.
Next year's average estimate for revenue is $1.75 billion. The average EPS estimate is $0.75.
Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 80 members out of 89 rating the stock outperform, and nine members rating it underperform. Among 25 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 24 give RSC Holdings a green thumbs-up, and one gives it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on RSC Holdings is hold, with an average price target of $18.63.
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