The 10-second takeaway
For the quarter ended June 30 (Q2), VSE missed estimates on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank. GAAP earnings per share grew.
Margins grew across the board.
VSE notched revenue of $119.1 million. The two analysts polled by S&P Capital IQ foresaw revenue of $125.8 million on the same basis. GAAP reported sales were 14% lower than the prior-year quarter's $139.2 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 $1.28. The two earnings estimates compiled by S&P Capital IQ anticipated $1.18 per share. GAAP EPS of $1.28 for Q2 were 8.5% higher than the prior-year quarter's $1.18 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 11.3%, 170 basis points better than the prior-year quarter. Operating margin was 10.7%, 210 basis points better than the prior-year quarter. Net margin was 5.8%, 130 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $127.5 million. On the bottom line, the average EPS estimate is $1.27.
Next year's average estimate for revenue is $500.8 million. The average EPS estimate is $4.56.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 449 members out of 462 rating the stock outperform, and 13 members rating it underperform. Among 99 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 97 give VSE a green thumbs-up, and two give it a red thumbs-down.
Looking for alternatives to VSE? It takes more than great companies to build a fortune for the future. Learn the basic financial habits of millionaires next door and get focused stock ideas in our free report, "3 Stocks That Will Help You Retire Rich." Click here for instant access to this free report.
- Add VSE to My Watchlist.
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 has no position in any of the stocks mentioned. 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.