The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Andersons beat expectations on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share grew significantly.
Gross margins were steady, operating margins grew, net margins grew.
Andersons logged revenue of $1.14 billion. The six analysts polled by S&P Capital IQ hoped for a top line of $997.2 million on the same basis. GAAP reported sales were 21% higher than the prior-year quarter's $938.7 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 $0.90. The eight earnings estimates compiled by S&P Capital IQ forecast $0.28 per share. GAAP EPS of $0.90 for Q3 were 53% higher than the prior-year quarter's $0.59 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 6.9%, about the same as the prior-year quarter. Operating margin was 1.8%, 70 basis points better than the prior-year quarter. Net margin was 1.5%, 30 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $1.44 billion. On the bottom line, the average EPS estimate is $1.05.
Next year's average estimate for revenue is $4.86 billion. The average EPS estimate is $3.84.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 223 members out of 271 rating the stock outperform, and 48 members rating it underperform. Among 65 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 46 give Andersons a green thumbs-up, and 19 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Andersons is hold, with an average price target of $43.92.
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