Alterra Capital Holdings Limited Beats on EPS But GAAP Results Lag
Alterra Capital Holdings Limited (NAS: ALTE) reported earnings on Feb. 8. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Alterra Capital Holdings Limited missed estimates on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted and GAAP earnings per share shrank significantly.
Margins shrank across the board.
Alterra Capital Holdings Limited logged revenue of $400.0 million. The two analysts polled by S&P Capital IQ foresaw revenue of $417.6 million. GAAP sales were 3.1% lower than the prior-year quarter's $414.5 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.47. The eight earnings estimates compiled by S&P Capital IQ anticipated $0.39 per share on the same basis. GAAP EPS of $0.30 for Q3 were 57% lower than the prior-year quarter's $0.70 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 22.7%, 1,670 basis points worse than the prior-year quarter. Operating margin was 9.1%, 1,060 basis points worse than the prior-year quarter. Net margin was 7.7%, 1,150 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $400.0 million. On the bottom line, the average EPS estimate is $0.28.
Next year's average estimate for revenue is $1.73 billion. The average EPS estimate is $0.87.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 66 members out of 73 rating the stock outperform, and seven members rating it underperform. Among 23 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 22 give Alterra Capital Holdings Limited 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 Alterra Capital Holdings Limited is outperform, with an average price target of $24.38.
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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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