Textainer Group Holdings Beats on Both Top and Bottom Lines

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Textainer Group Holdings (NYS: TGH) reported earnings on May 8. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), Textainer Group Holdings Limited beat expectations on both revenue and earnings per share.

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


Gross margin and operating margin dropped, while net margin expanded.

Revenue details
Textainer Group Holdings booked revenue of $117.5 million. The eight analysts polled by S&P Capital IQ expected net sales of $111 million on the same basis. GAAP reported sales were 29% higher than the prior-year quarter's $91.2 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 $0.97. The eight earnings estimates compiled by S&P Capital IQ predicted $0.94 per share. GAAP EPS of $0.99 for Q1 were 32% higher than the prior-year quarter's $0.75 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 86.3%, 480 basis points worse than the prior-year quarter. Operating margin was 57.8%, 120 basis points worse than the prior-year quarter. Net margin was 42.5%, 170 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $115.8 million. On the bottom line, the average EPS estimate is $0.98.

Next year's average estimate for revenue is $464.6 million. The average EPS estimate is $3.91.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 187 members out of 192 rating the stock outperform, and five members rating it underperform. Among 47 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), all 47 give Textainer Group Holdings Limited a green thumbs-up.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Textainer Group Holdings Limited is outperform, with an average price target of $36.14.

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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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