The 10-second takeaway
For the quarter ended March 31 (Q4), Cosan whiffed on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded and GAAP earnings per share dropped significantly.
Margins contracted across the board.
Cosan logged revenue of $3.18 billion. The two analysts polled by S&P Capital IQ foresaw a top line of $3.69 billion on the same basis. GAAP reported sales were 12% higher than the prior-year quarter's $2.84 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 $0.21. The two earnings estimates compiled by S&P Capital IQ anticipated $0.14 per share. GAAP EPS of $0.22 for Q4 were 68% lower than the prior-year quarter's $0.68 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 10.0%, 640 basis points worse than the prior-year quarter. Operating margin was 3.2%, 390 basis points worse than the prior-year quarter. Net margin was 1.8%, 470 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $3.40 billion. On the bottom line, the average EPS estimate is $0.22.
Next year's average estimate for revenue is $14.13 billion. The average EPS estimate is $0.99.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 352 members out of 374 rating the stock outperform, and 22 members rating it underperform. Among 73 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 67 give Cosan 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 Cosan is outperform, with an average price target of $17.07.
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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 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.