Genesee & Wyoming
The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Genesee & Wyoming beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded slightly and GAAP earnings per share dropped to a loss.
Margins dropped across the board.
Genesee & Wyoming chalked up revenue of $222.7 million. The 10 analysts polled by S&P Capital IQ expected to see net sales of $219.8 million on the same basis. GAAP reported sales were 2.5% higher than the prior-year quarter's $217.2 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 $0.74. The 14 earnings estimates compiled by S&P Capital IQ predicted $0.69 per share. GAAP EPS were -$0.47 for Q3 compared to $0.77 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 23.7%, 1,980 basis points worse than the prior-year quarter. Operating margin was 23.7%, 180 basis points worse than the prior-year quarter. Net margin was -8.8%, 2,400 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $223.1 million. On the bottom line, the average EPS estimate is $0.84.
Next year's average estimate for revenue is $868.9 million. The average EPS estimate is $2.81.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 837 members out of 861 rating the stock outperform, and 24 members rating it underperform. Among 283 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 279 give Genesee & Wyoming 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 Genesee & Wyoming is outperform, with an average price target of $71.71.
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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. Motley Fool newsletter services recommend Genesee & Wyoming. 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.