Genesee & Wyoming
The 10-second takeaway
For the quarter ended June 30 (Q2), Genesee & Wyoming met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly. GAAP earnings per share grew significantly.
Gross margins dropped, operating margins increased, net margins contracted.
Genesee & Wyoming booked revenue of $400.7 million. The 12 analysts polled by S&P Capital IQ hoped for revenue of $404.5 million on the same basis. GAAP reported sales were 84% higher than the prior-year quarter's $217.4 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
EPS came in at $1.14. The 16 earnings estimates compiled by S&P Capital IQ anticipated $1.11 per share. GAAP EPS of $1.14 for Q2 were 36% higher than the prior-year quarter's $0.84 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
For the quarter, gross margin was 26.8%, much worse than the prior-year quarter. Operating margin was 26.8%, 330 basis points better than the prior-year quarter. Net margin was 16.2%, 50 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $413.8 million. On the bottom line, the average EPS estimate is $1.31.
Next year's average estimate for revenue is $1.61 billion. The average EPS estimate is $4.66.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 931 members out of 956 rating the stock outperform, and 25 members rating it underperform. Among 315 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 311 give Genesee & Wyoming a green thumbs-up, and four give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Genesee & Wyoming is outperform, with an average price target of $97.00.
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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. The Motley Fool recommends Genesee & Wyoming. 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.