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Can World Fuel Services Beat These Numbers?

By Seth Jayson – Updated Apr 7, 2017 at 12:06PM

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Checking expectations

World Fuel Services (NYSE: INT) is expected to report Q3 earnings on Nov. 1. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict World Fuel Services's revenues will grow 6.3% and EPS will wither -4.1%.

The average estimate for revenue is $10.11 billion. On the bottom line, the average EPS estimate is $0.71.

Revenue details
Last quarter, World Fuel Services logged revenue of $9.62 billion. GAAP reported sales were 10% higher than the prior-year quarter's $8.71 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, non-GAAP EPS came in at $0.74. GAAP EPS of $0.68 for Q2 were 2.9% lower than the prior-year quarter's $0.70 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 1.8%, 10 basis points worse than the prior-year quarter. Operating margin was 0.8%, about the same as the prior-year quarter. Net margin was 0.5%, 10 basis points worse than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $39.62 billion. The average EPS estimate is $2.75.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 311 members out of 326 rating the stock outperform, and 15 members rating it underperform. Among 63 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 59 give World Fuel Services 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 World Fuel Services is hold, with an average price target of $48.25.

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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 has no positions in the stocks mentioned above. 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.

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