SeaCube Container Leasing Misses Where It Counts

Seth Jayson, The Motley Fool
Updated

SeaCube Container Leasing (NYS: BOX) reported earnings on May 7. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), SeaCube Container Leasing met expectations on revenue and missed estimates on earnings per share.

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


Gross margin dropped, operating margin increased, and net margin shrank.

Revenue details
SeaCube Container Leasing reported revenue of $49 million. The five analysts polled by S&P Capital IQ foresaw sales of $48.9 million on the same basis. GAAP-reported sales were 33% higher than the prior-year quarter's $36.8 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 $0.56. The six earnings estimates compiled by S&P Capital IQ forecast $0.58 per share. GAAP EPS of $0.56 for Q1 were 24% higher than the prior-year quarter's $0.45 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 97.2%, 10 basis points worse than the prior-year quarter. Operating margin was 58.4%, 400 basis points better than the prior-year quarter. Net margin was 23.1%, 140 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $51.4 million. On the bottom line, the average EPS estimate is $0.61.

Next year's average estimate for revenue is $209.7 million. The average EPS estimate is $2.55.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 69 members rating the stock outperform and one members rating it underperform. Among 11 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 10 give SeaCube Container Leasing 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 SeaCube Container Leasing is outperform, with an average price target of $20.

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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.

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