RSC Holdings Increases Sales but Misses Estimates on Earnings
RSC Holdings (NYS: RRR) reported earnings on Jan. 26. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), RSC Holdings beat expectations on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly, and GAAP earnings per share expanded.
Margins expanded across the board.
RSC Holdings logged revenue of $420.8 million. The nine analysts polled by S&P Capital IQ wanted to see sales of $403.4 million. Sales were 24% higher than the prior-year quarter's $338.9 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $0.08. The 16 earnings estimates compiled by S&P Capital IQ averaged $0.09 per share on the same basis. GAAP EPS were $0.15 for Q4 compared to -$0.07 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 50.7%, 2,390 basis points better than the prior-year quarter. Operating margin was 17.2%, 660 basis points better than the prior-year quarter. Net margin was 1.1%, 320 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $389.7 million. On the bottom line, the average EPS estimate is $0.00.
Next year's average estimate for revenue is $1.73 billion. The average EPS estimate is $0.77.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 79 members out of 89 rating the stock outperform, and 10 members rating it underperform. Among 29 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 28 give RSC Holdings a green thumbs-up, and one give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on RSC Holdings is hold, with an average price target of $14.41.
Over the decades, small-cap stocks, like RSC Holdings have provided market-beating returns, provided they're value priced and have solid businesses. Read about a pair of companies with a lock on their markets in "Too Small to Fail: Two Small Caps the Government Won't Let Go Broke." Click here for instant access to this free report.
- Add RSC Holdings to My Watchlist.
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.
Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.