The 10-second takeaway
For the quarter ended March 31 (Q1), Core-Mark Holding beat expectations on revenues and earnings per share.
Compared with the prior-year quarter, revenue grew significantly and GAAP earnings per share grew significantly.
Gross margins shrank, operating margins increased, net margins grew.
Core-Mark Holding notched revenue of $2.10 billion. The two analysts polled by S&P Capital IQ expected revenue of $1.99 billion on the same basis. GAAP reported sales were 62% higher than the prior-year quarter's $1.30 billion.
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 $0.39. The one earnings estimate compiled by S&P Capital IQ anticipated $0.25 per share. GAAP EPS of $0.31 for Q1 were much higher than the prior-year quarter's $0.04 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 5.2%, 190 basis points worse than the prior-year quarter. Operating margin was 0.3%, 20 basis points better than the prior-year quarter. Net margin was 0.2%, 20 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $2.30 billion. On the bottom line, the average EPS estimate is $1.12.
Next year's average estimate for revenue is $9.17 billion. The average EPS estimate is $3.59.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 105 members out of 108 rating the stock outperform, and four members rating it underperform. Among 33 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 33 give Core-Mark Holding a green thumbs-up, and give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Core-Mark Holding is buy, with an average price target of $52.50.
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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. 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.