The 10-second takeaway
For the quarter ended March 31 (Q1), Copa Holdings beat expectations on both revenue and earnings per share.
Compared to the prior-year quarter, revenue increased significantly, while GAAP earnings per share grew slightly.
Gross margin grew, operating margin contracted, and net margins dropped.
Copa Holdings chalked up revenue of $543.3 million. The eight analysts polled by S&P Capital IQ looked for a top line of $527.2 million on the same basis. GAAP-reported sales were 28% higher than the prior-year quarter's $423.1 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 $2.04. The nine earnings estimates compiled by S&P Capital IQ predicted $1.98 per share. GAAP EPS of $2.16 for Q1 were 0.9% higher than the prior-year quarter's $2.14 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 42.2%, 640 basis points better than the prior-year quarter. Operating margin was 20.5%, 340 basis points worse than the prior-year quarter. Net margin was 17.7%, 460 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $501.6 million. On the bottom line, the average EPS estimate is $1.40.
Next year's average estimate for revenue is $2.18 billion. The average EPS estimate is $7.57.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 150 members rating the stock outperform and 23 members rating it underperform. Among 36 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 32 give Copa Holdings 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 Copa Holdings is outperform, with an average price target of $85.66.
Can your retirement portfolio provide you with enough income to last? You'll need more than Copa Holdings. Learn about crafting a smarter retirement plan in "The Shocking Can't-Miss Truth About Your Retirement." Click here for instant access to this free report.
- Add Copa Holdings 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.