Ritchie Bros. Auctioneers
The 10-second takeaway
For the quarter ended March 31 (Q1), Ritchie Bros. Auctioneers beat expectations on revenues and met expectations on earnings per share.
Compared with the prior-year quarter, revenue increased and GAAP earnings per share increased.
Gross margins expanded, operating margins grew, net margins shrank.
Ritchie Bros. Auctioneers tallied revenue of $101.3 million. The nine analysts polled by S&P Capital IQ looked for net sales of $98.4 million on the same basis. GAAP reported sales were 14% higher than the prior-year quarter's $88.5 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 $0.17. The 12 earnings estimates compiled by S&P Capital IQ anticipated $0.17 per share. GAAP EPS of $0.17 for Q1 were 6.3% 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 90.0%, 10 basis points better than the prior-year quarter. Operating margin was 27.5%, 560 basis points better than the prior-year quarter. Net margin was 17.7%, 100 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $139.0 million. On the bottom line, the average EPS estimate is $0.37.
Next year's average estimate for revenue is $456.3 million. The average EPS estimate is $0.93.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 149 members out of 157 rating the stock outperform, and eight members rating it underperform. Among 50 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 47 give Ritchie Bros. Auctioneers 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 Ritchie Bros. Auctioneers is outperform, with an average price target of $24.69.
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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. He is the co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Motley Fool newsletter services have recommended buying shares of Ritchie Auctioneers. Try any of our Foolish newsletter services free for 30 days. We Fools don't 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.