Air Transport Services Group
The 10-second takeaway
For the quarter ended March 31 (Q1), Air Transport Services Group missed estimates on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted significantly and GAAP earnings per share grew significantly.
Margins improved across the board.
Air Transport Services Group reported revenue of $145.5 million. The five analysts polled by S&P Capital IQ foresaw a top line of $156.1 million on the same basis. GAAP reported sales were 17% lower than the prior-year quarter's $175.1 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 $0.11. The five earnings estimates compiled by S&P Capital IQ predicted $0.08 per share. GAAP EPS of $0.10 for Q1 were 150% 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 39.4%, 760 basis points better than the prior-year quarter. Operating margin was 9.5%, 70 basis points better than the prior-year quarter. Net margin was 4.4%, 280 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $165.9 million. On the bottom line, the average EPS estimate is $0.20.
Next year's average estimate for revenue is $678.0 million. The average EPS estimate is $0.79.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 275 members out of 326 rating the stock outperform, and 52 members rating it underperform. Among 79 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 74 give Air Transport Services Group a green thumbs-up, and five give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Air Transport Services Group is buy, with an average price target of $8.60.
Over the decades, small-cap stocks, like Air Transport Services Group have provided market-beating returns, provided they're value priced and have solid businesses. Read about a pair of companies with a lock on their markets in "Too Small to Fail: Two Small Caps the Government Won't Let Go Broke." Click here for instant access to this free report.
- Add Air Transport Services Group to My Watchlist.
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.