The 10-second takeaway
For the quarter ended March 31 (Q1), Heartland Express beat expectations on revenue and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased and GAAP earnings per share expanded significantly.
Margins expanded across the board.
Heartland Express tallied revenue of $134.8 million. The 10 analysts polled by S&P Capital IQ hoped for revenue of $129.5 million on the same basis. GAAP reported sales were 5.6% higher than the prior-year quarter's $127.7 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 $0.19. The 15 earnings estimates compiled by S&P Capital IQ averaged $0.17 per share. GAAP EPS of $0.19 for Q1 were 19% higher than the prior-year quarter's $0.16 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 31.2%, 90 basis points better than the prior-year quarter. Operating margin was 14.5%, 40 basis points better than the prior-year quarter. Net margin was 12.3%, 60 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $140.0 million. On the bottom line, the average EPS estimate is $0.21.
Next year's average estimate for revenue is $554.6 million. The average EPS estimate is $0.78.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 76 members out of 84 rating the stock outperform, and eight members rating it underperform. Among 28 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 24 give Heartland Express a green thumbs-up, and four give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Heartland Express is hold, with an average price target of $15.45.
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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. The Motley Fool owns shares of Heartland Express. 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.