The 10-second takeaway
For the quarter ended March 31 (Q4), AMERCO beat expectations on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue increased and GAAP earnings per share improved significantly.
Margins improved across the board.
AMERCO tallied revenue of $523.4 million. The one analyst polled by S&P Capital IQ predicted sales of $510.0 million on the same basis. GAAP reported sales were 7.2% higher than the prior-year quarter's $488.4 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 $1.29. The two earnings estimates compiled by S&P Capital IQ anticipated $0.38 per share. GAAP EPS of $1.30 for Q4 were 150% higher than the prior-year quarter's $0.52 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 30.9%, 450 basis points better than the prior-year quarter. Operating margin was 3.4%, 190 basis points better than the prior-year quarter. Net margin was 4.9%, 220 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $672.0 million. On the bottom line, the average EPS estimate is $4.21.
Next year's average estimate for revenue is $2.54 billion. The average EPS estimate is $12.47.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 57 members out of 78 rating the stock outperform, and 21 members rating it underperform. Among 20 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 13 give AMERCO a green thumbs-up, and seven give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on AMERCO is buy, with an average price target of $132.00.
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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.