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.
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