World Fuel Services
The 10-second takeaway
For the quarter ended March 31 (Q1), World Fuel Services met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded. Non-GAAP earnings per share grew significantly. GAAP earnings per share expanded.
Gross margins expanded, operating margins grew, net margins were steady.
Revenue details
World Fuel Services logged revenue of $10.18 billion. The five analysts polled by S&P Capital IQ predicted sales of $10.20 billion on the same basis. GAAP reported sales were 7.4% higher than the prior-year quarter's $9.48 billion.
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 $0.77. The three earnings estimates compiled by S&P Capital IQ forecast $0.66 per share. Non-GAAP EPS of $0.77 for Q1 were 18% higher than the prior-year quarter's $0.65 per share. GAAP EPS of $0.68 for Q1 were 4.6% higher than the prior-year quarter's $0.65 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 1.8%, 10 basis points better than the prior-year quarter. Operating margin was 0.7%, 10 basis points better than the prior-year quarter. Net margin was 0.5%, much about the same as the prior-year quarter. (Margins calculated in GAAP terms.)
Looking ahead
Next quarter's average estimate for revenue is $10.31 billion. On the bottom line, the average EPS estimate is $0.70.
Next year's average estimate for revenue is $42.32 billion. The average EPS estimate is $2.91.
Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 307 members out of 322 rating the stock outperform, and 15 members rating it underperform. Among 71 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 66 give World Fuel Services a green thumbs-up, and five give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on World Fuel Services is outperform, with an average price target of $43.75.
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