The 10-second takeaway
For the quarter ended June 30 (Q2), Pacer International missed estimates on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue shrank significantly. GAAP earnings per share grew.
Margins grew across the board.
Pacer International booked revenue of $238.0 million. The seven analysts polled by S&P Capital IQ foresaw revenue of $255.7 million on the same basis. GAAP reported sales were 35% lower than the prior-year quarter's $368.3 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 $0.05. The nine earnings estimates compiled by S&P Capital IQ anticipated $0.06 per share. GAAP EPS of $0.05 for Q2 were 25% higher than the prior-year quarter's $0.04 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 13.7%, 320 basis points better than the prior-year quarter. Operating margin was 1.3%, 60 basis points better than the prior-year quarter. Net margin was 0.8%, 40 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $265.4 million. On the bottom line, the average EPS estimate is $0.08.
Next year's average estimate for revenue is $1.03 billion. The average EPS estimate is $0.29.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 327 members out of 353 rating the stock outperform, and 26 members rating it underperform. Among 109 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 102 give Pacer International a green thumbs-up, and seven give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Pacer International is hold, with an average price target of $6.43.
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