Cosan Beats Expectations but Takes a Step Back Anyway
Cosan (NYS: CZZ) reported earnings on May 31. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended March 31 (Q4), Cosan whiffed on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded and GAAP earnings per share dropped significantly.
Margins contracted across the board.
Cosan logged revenue of $3.18 billion. The two analysts polled by S&P Capital IQ foresaw a top line of $3.69 billion on the same basis. GAAP reported sales were 12% higher than the prior-year quarter's $2.84 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.21. The two earnings estimates compiled by S&P Capital IQ anticipated $0.14 per share. GAAP EPS of $0.22 for Q4 were 68% lower than the prior-year quarter's $0.68 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 10.0%, 640 basis points worse than the prior-year quarter. Operating margin was 3.2%, 390 basis points worse than the prior-year quarter. Net margin was 1.8%, 470 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $3.40 billion. On the bottom line, the average EPS estimate is $0.22.
Next year's average estimate for revenue is $14.13 billion. The average EPS estimate is $0.99.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 352 members out of 374 rating the stock outperform, and 22 members rating it underperform. Among 73 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 67 give Cosan 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 Cosan is outperform, with an average price target of $17.07.
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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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