Textainer Group Holdings Beats on Both Top and Bottom Lines

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Textainer Group Holdings (NYS: TGH) reported earnings on March 15. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Textainer Group Holdings beat expectations on revenues and earnings per share.

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

Margins shrank across the board.

Revenue details
Textainer Group Holdings tallied revenue of $116.4 million. The nine analysts polled by S&P Capital IQ foresaw revenue of $110.2 million on the same basis. GAAP reported sales were 39% higher than the prior-year quarter's $84.0 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 $1.06. The 10 earnings estimates compiled by S&P Capital IQ predicted $0.99 per share on the same basis. GAAP EPS of $1.10 for Q4 were 36% higher than the prior-year quarter's $0.81 per share.

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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 84.7%, 910 basis points worse than the prior-year quarter. Operating margin was 57.5%, 360 basis points worse than the prior-year quarter. Net margin was 47.2%, 50 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $110.8 million. On the bottom line, the average EPS estimate is $0.93.

Next year's average estimate for revenue is $457.3 million. The average EPS estimate is $3.84.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 172 members out of 177 rating the stock outperform, and five members rating it underperform. Among 42 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 42 give Textainer Group Holdings a green thumbs-up.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Textainer Group Holdings is outperform, with an average price target of $33.43.

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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. Motley Fool newsletter services have recommended buying shares of Textainer Group Holdings. 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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