The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Heartland Express met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share dropped significantly.
Gross margins contracted, operating margins grew, net margins dropped.
Heartland Express tallied revenue of $136.2 million. The 12 analysts polled by S&P Capital IQ foresaw sales of $135.3 million on the same basis. GAAP reported sales were 3.8% higher than the prior-year quarter's $131.2 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 $0.17. The 16 earnings estimates compiled by S&P Capital IQ anticipated $0.16 per share. GAAP EPS of $0.17 for Q4 were 15% lower than the prior-year quarter's $0.20 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 32.2%, 40 basis points worse than the prior-year quarter. Operating margin was 14.0%, 100 basis points better than the prior-year quarter. Net margin was 10.5%, 250 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $137.4 million. On the bottom line, the average EPS estimate is $0.17.
Next year's average estimate for revenue is $565.7 million. The average EPS estimate is $0.76.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 77 members out of 85 rating the stock outperform, and eight members rating it underperform. Among 27 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 25 give Heartland Express a green thumbs-up, and two give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Heartland Express is hold, with an average price target of $14.25.
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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 owns shares of Heartland Express. 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.