American Railcar Industries
The 10-second takeaway
For the quarter ended March 31 (Q1), American Railcar Industries beat expectations on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly and GAAP earnings per share grew.
Margins grew across the board.
American Railcar Industries booked revenue of $181.6 million. The seven analysts polled by S&P Capital IQ looked for revenue of $157.5 million on the same basis. GAAP reported sales were much higher than the prior-year quarter's $84.8 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 $0.56. The eight earnings estimates compiled by S&P Capital IQ predicted $0.27 per share. GAAP EPS were $0.56 for Q1 compared to -$0.25 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 16.7%, 1,090 basis points better than the prior-year quarter. Operating margin was 13.1%, 1,540 basis points better than the prior-year quarter. Net margin was 6.6%, 1,290 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $177.7 million. On the bottom line, the average EPS estimate is $0.52.
Next year's average estimate for revenue is $716.2 million. The average EPS estimate is $2.16.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 217 members out of 250 rating the stock outperform, and 33 members rating it underperform. Among 71 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 65 give American Railcar Industries a green thumbs-up, and six give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on American Railcar Industries is outperform, with an average price target of $29.00.
Over the decades, small-cap stocks, like American Railcar Industries 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 American Railcar Industries 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.