Mac-Gray Beats on the Top Line

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Mac-Gray (NYS: TUC) filed its 10-K on March 9. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Mac-Gray met expectations on revenue and missed estimates on earnings per share.

Compared to the prior-year quarter, revenue grew slightly and GAAP earnings per share improved.

Margins increased across the board.

Revenue details
Mac-Gray recorded revenue of $82.7 million. The two analysts polled by S&P Capital IQ predicted revenue of $83.0 million on the same basis. GAAP reported sales were 1.1% higher than the prior-year quarter's $81.7 million.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Non-GAAP EPS came in at $0.07. The two earnings estimates compiled by S&P Capital IQ anticipated $0.09 per share on the same basis. GAAP EPS were $0.01 for Q4 against -$0.05 per share for the prior-year quarter.

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Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 30.7%, 40 basis points better than the prior-year quarter. Operating margin was 7.2%, 160 basis points better than the prior-year quarter. Net margin was 0.1%, 100 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $83.4 million. On the bottom line, the average EPS estimate is $0.14.

Next year's average estimate for revenue is $326.2 million. The average EPS estimate is $0.51.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 27 members out of 35 rating the stock outperform, and eight members rating it underperform. Among 10 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), eight give Mac-Gray a green thumbs-up, and two give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Mac-Gray is outperform, with an average price target of $20.00.

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At the time this article was published 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 ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool owns shares of Mac-Gray. 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.

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