The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Zipcar beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share expanded significantly.
Margins expanded across the board.
Zipcar booked revenue of $78.2 million. The seven analysts polled by S&P Capital IQ foresaw revenue of $75.8 million on the same basis. GAAP reported sales were 15% higher than the prior-year quarter's $68.1 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 $0.10. The four earnings estimates compiled by S&P Capital IQ predicted $0.01 per share. GAAP EPS of $0.10 for Q3 were 400% higher than the prior-year quarter's $0.02 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 41.4%, 510 basis points better than the prior-year quarter. Operating margin was 5.6%, 370 basis points better than the prior-year quarter. Net margin was 5.5%, 450 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $69.4 million. On the bottom line, the average EPS estimate is $0.10.
Next year's average estimate for revenue is $274.7 million. The average EPS estimate is $0.05.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 873 members out of 950 rating the stock outperform, and 77 members rating it underperform. Among 247 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 227 give Zipcar a green thumbs-up, and 20 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Zipcar is underperform, with an average price target of $8.17.
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