Alliance Holdings Crushes Earnings Estimates

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Alliance Holdings (NAS: AHGP) reported earnings on April 30. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), Alliance Holdings missed estimates on revenues and crushed expectations on earnings per share.

Compared to the prior-year quarter, revenue increased and GAAP earnings per share shrank.


Margins contracted across the board.

Revenue details
Alliance Holdings reported revenue of $443.5 million. The three analysts polled by S&P Capital IQ foresaw revenue of $465.3 million on the same basis. GAAP reported sales were 4.8% higher than the prior-year quarter's $423.2 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
EPS came in at $0.82. The three earnings estimates compiled by S&P Capital IQ forecast $0.66 per share. GAAP EPS of $0.82 for Q1 were 4.7% lower than the prior-year quarter's $0.86 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 33.6%, 280 basis points worse than the prior-year quarter. Operating margin was 20.6%, 370 basis points worse than the prior-year quarter. Net margin was 11.1%, 110 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $508.3 million. On the bottom line, the average EPS estimate is $0.74.

Next year's average estimate for revenue is $2.09 billion. The average EPS estimate is $3.14.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 258 members out of 265 rating the stock outperform, and seven members rating it underperform. Among 73 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 72 give Alliance Holdings a green thumbs-up, and one gives it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Alliance Holdings is outperform, with an average price target of $62.50.

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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. 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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