RSC Holdings (NYS: RRR) reported earnings on April 17. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended March 31 (Q1), RSC Holdings beat expectations on revenues and exceeded expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly and GAAP earnings per share expanded.
Margins expanded across the board.
RSC Holdings booked revenue of $408.1 million. The eight analysts polled by S&P Capital IQ anticipated revenue of $388.5 million on the same basis. GAAP reported sales were 25% higher than the prior-year quarter's $326.9 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 $0.11. The 10 earnings estimates compiled by S&P Capital IQ predicted $0.00 per share on the same basis. GAAP EPS were $0.10 for Q1 against -$0.49 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 49.5%, 2,840 basis points better than the prior-year quarter. Operating margin was 16.6%, 1,110 basis points better than the prior-year quarter. Net margin was 2.6%, 1,800 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $427.5 million. On the bottom line, the average EPS estimate is $0.18.
Next year's average estimate for revenue is $1.75 billion. The average EPS estimate is $0.75.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 80 members out of 89 rating the stock outperform, and nine members rating it underperform. Among 25 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 24 give RSC 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 RSC Holdings is hold, with an average price target of $18.63.
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 thisarticle 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.