The 10-second takeaway
For the quarter ended June 30 (Q2), Zipcar missed estimates on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue improved significantly and GAAP loss per share dropped.
Margins improved across the board.
Zipcar tallied revenue of $70.8 million. The eight analysts polled by S&P Capital IQ predicted sales of $73.0 million on the same basis. GAAP reported sales were 15% higher than the prior-year quarter's $61.6 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 -$0.01. The five earnings estimates compiled by S&P Capital IQ anticipated $0.00 per share. GAAP EPS were -$0.01 for Q2 against -$0.17 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 38.0%, 380 basis points better than the prior-year quarter. Operating margin was 1.0%, 50 basis points better than the prior-year quarter. Net margin was -0.6%, 840 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $81.5 million. On the bottom line, the average EPS estimate is $0.08.
Next year's average estimate for revenue is $290.9 million. The average EPS estimate is $0.13.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 865 members out of 946 rating the stock outperform, and 81 members rating it underperform. Among 239 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 214 give Zipcar a green thumbs-up, and 25 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Zipcar is outperform, with an average price target of $16.86.
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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. The Motley Fool owns shares of Zipcar. Motley Fool newsletter services recommend Zipcar. 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.