Alliance Resource Partners
The 10-second takeaway
For the quarter ended March 31 (Q1), Alliance Resource Partners beat expectations on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly. GAAP earnings per share grew significantly.
Gross margins expanded, operating margins dropped, net margins increased.
Alliance Resource Partners reported revenue of $548.1 million. The six analysts polled by S&P Capital IQ hoped for revenue of $529.5 million on the same basis. GAAP reported sales were 24% higher than the prior-year quarter's $443.6 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 $1.95. The six earnings estimates compiled by S&P Capital IQ predicted $1.37 per share. GAAP EPS of $1.95 for Q1 were 27% higher than the prior-year quarter's $1.54 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 36.3%, 260 basis points better than the prior-year quarter. Operating margin was 20.5%, 20 basis points worse than the prior-year quarter. Net margin was 13.4%, 50 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $546.7 million. On the bottom line, the average EPS estimate is $1.44.
Next year's average estimate for revenue is $2.18 billion. The average EPS estimate is $5.84.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 710 members out of 730 rating the stock outperform, and 20 members rating it underperform. Among 185 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 179 give Alliance Resource Partners a green thumbs-up, and six give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Alliance Resource Partners is outperform, with an average price target of $77.00.
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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 recommends Alliance Resource Partners, L.P. 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.