World Fuel Services
The 10-second takeaway
For the quarter ended June 30 (Q2), World Fuel Services beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew. Non-GAAP earnings per share expanded. GAAP earnings per share grew.
Gross margins were steady, operating margins shrank, net margins were steady.
World Fuel Services booked revenue of $10.48 billion. The five analysts polled by S&P Capital IQ foresaw sales of $10.24 billion on the same basis. GAAP reported sales were 8.9% higher than the prior-year quarter's $9.62 billion.
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 $0.80. The three earnings estimates compiled by S&P Capital IQ predicted $0.68 per share. Non-GAAP EPS of $0.80 for Q2 were 8.1% higher than the prior-year quarter's $0.74 per share. GAAP EPS of $0.71 for Q2 were 4.4% higher than the prior-year quarter's $0.68 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 1.8%, much about the same as the prior-year quarter. Operating margin was 0.7%, 10 basis points worse than the prior-year quarter. Net margin was 0.5%, much about the same as the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $10.78 billion. On the bottom line, the average EPS estimate is $0.73.
Next year's average estimate for revenue is $42.16 billion. The average EPS estimate is $2.84.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 310 members out of 325 rating the stock outperform, and 15 members rating it underperform. Among 72 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 68 give World Fuel Services 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 World Fuel Services is hold, with an average price target of $44.25.
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