AMERCO Beats on EPS but GAAP Results Lag
AMERCO (NAS: UHAL) reported earnings on Feb. 8. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q3), AMERCO beat expectations on revenues and earnings per share.
Compared to the prior-year quarter, revenue improved significantly and GAAP earnings per share dropped significantly.
Margins contracted across the board.
AMERCO chalked up revenue of $633.1 million. The one analyst polled by S&P Capital IQ looked for a top line of $551.0 million on the same basis. GAAP reported sales were 19% higher than the prior-year quarter's $530.0 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 $1.65. The two earnings estimates compiled by S&P Capital IQ averaged $0.81 per share on the same basis. GAAP EPS of $0.04 for Q3 were 95% lower than the prior-year quarter's $0.80 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 20.4%, 690 basis points worse than the prior-year quarter. Operating margin was 6.2%, 560 basis points worse than the prior-year quarter. Net margin was 0.1%, 340 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $507.0 million. On the bottom line, the average EPS estimate is $0.32.
Next year's average estimate for revenue is $2.40 billion. The average EPS estimate is $10.13.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 58 members out of 79 rating the stock outperform, and 21 members rating it underperform. Among 21 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 15 give AMERCO a green thumbs-up, and six give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on AMERCO is buy, with an average price target of $123.50.
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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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