The 10-second takeaway
For the quarter ended Dec. 31 (Q3), Ryanair Holdings beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly and GAAP earnings per share increased. The non-GAAP profit was a surprise, as analysts had predicted a loss.
Gross margins dropped, operating margins increased, net margins expanded.
Ryanair Holdings recorded revenue of $1.28 billion. The five analysts polled by S&P Capital IQ wanted to see a top line of $1.19 billion on the same basis. GAAP reported sales were 16% higher than the prior-year quarter's $1.10 billion.
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 $0.08. The one earnings estimate compiled by S&P Capital IQ predicted -$0.08 per share. GAAP EPS of $0.02 for Q3 were 100% higher than the prior-year quarter's $0.01 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 16.4%, 100 basis points worse than the prior-year quarter. Operating margin was 3.6%, 10 basis points better than the prior-year quarter. Net margin was 1.9%, 10 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $1.08 billion. On the bottom line, the average EPS estimate is -$0.28.
Next year's average estimate for revenue is $6.47 billion. The average EPS estimate is $2.35.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 147 members out of 175 rating the stock outperform, and 28 members rating it underperform. Among 53 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 44 give Ryanair Holdings a green thumbs-up, and nine give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Ryanair Holdings is outperform, with an average price target of $45.00.
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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 position in any of the stocks mentioned. 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.