Ritchie Bros. Auctioneers Misses Where it Counts

Just the facts, Fool.

Seth Jayson
Seth Jayson
May 1, 2013 at 12:00AM
Other

Ritchie Bros. Auctioneers (NYSE: RBA) reported earnings on April 30. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), Ritchie Bros. Auctioneers beat slightly on revenues and missed estimates on earnings per share.

Compared to the prior-year quarter, revenue grew slightly. GAAP earnings per share contracted significantly.

Gross margins increased, operating margins shrank, net margins dropped.

Revenue details
Ritchie Bros. Auctioneers reported revenue of $102.1 million. The 12 analysts polled by S&P Capital IQ expected to see net sales of $100.4 million on the same basis. GAAP reported sales were the same as the prior-year quarter's.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.13. The 14 earnings estimates compiled by S&P Capital IQ forecast $0.15 per share. GAAP EPS of $0.13 for Q1 were 24% lower than the prior-year quarter's $0.17 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 90.8%, 80 basis points better than the prior-year quarter. Operating margin was 21.2%, 630 basis points worse than the prior-year quarter. Net margin was 13.8%, 390 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)


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Looking ahead
Next quarter's average estimate for revenue is $146.2 million. On the bottom line, the average EPS estimate is $0.36.

Next year's average estimate for revenue is $476.5 million. The average EPS estimate is $0.88.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 146 members out of 154 rating the stock outperform, and eight members rating it underperform. Among 49 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 46 give Ritchie Bros. Auctioneers a green thumbs-up, and three give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Ritchie Bros. Auctioneers is hold, with an average price target of $23.00.

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