The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Leucadia National whiffed on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share expanded.
Gross margins dropped, operating margins dropped, net margins grew.
Leucadia National booked revenue of $2.19 billion. The one analyst polled by S&P Capital IQ wanted to see sales of $2.65 billion on the same basis. GAAP reported sales were much higher than the prior-year quarter's $236.1 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 $0.44. The two earnings estimates compiled by S&P Capital IQ forecast $1.24 per share. GAAP EPS were $0.43 for Q3 against -$1.19 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 12.8%, 4,340 basis points worse than the prior-year quarter. Operating margin was 7.5%, 1,240 basis points worse than the prior-year quarter. Net margin was 4.9%, 12,820 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $2.19 billion. On the bottom line, the average EPS estimate is $0.62.
Next year's average estimate for revenue is $9.41 billion. The average EPS estimate is $3.05.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 1,292 members out of 1,318 rating the stock outperform, and 26 members rating it underperform. Among 377 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 373 give Leucadia National 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 Leucadia National is hold, with an average price target of $24.00.
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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 Leucadia National. 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.