World Fuel Services
The 10-second takeaway
For the quarter ended Sep. 30 (Q3), World Fuel Services missed slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share shrank slightly.
Gross margins were steady, operating margins were steady, net margins dropped.
World Fuel Services booked revenue of $9.91 billion. The six analysts polled by S&P Capital IQ anticipated sales of $10.11 billion on the same basis. GAAP reported sales were 4.2% higher than the prior-year quarter's $9.51 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 $0.81. The six earnings estimates compiled by S&P Capital IQ predicted $0.71 per share. GAAP EPS of $0.72 for Q3 were 2.7% lower than the prior-year quarter's $0.74 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 1.8%, about the same as the prior-year quarter. Operating margin was 0.7%, about the same as the prior-year quarter. Net margin was 0.5%, 10 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $10.42 billion. On the bottom line, the average EPS estimate is $0.73.
Next year's average estimate for revenue is $39.62 billion. The average EPS estimate is $2.75.
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 65 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 61 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 $41.50.
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