Air Transport Services Group Beats Expectations But Takes A Step Back Anyway

Seth Jayson, The Motley Fool
Updated

Air Transport Services Group (NAS: ATSG) reported earnings on Nov. 8. Here are the numbers you need to know.

The 10-second takeaway
 For the quarter ended Sep. 30 (Q3), Air Transport Services Group missed estimates on revenues and beat expectations on earnings per share.

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


Margins expanded across the board.

Revenue details
 Air Transport Services Group tallied revenue of $153.8 million. The five analysts polled by S&P Capital IQ hoped for a top line of $160.0 million on the same basis. GAAP reported sales were 21% lower than the prior-year quarter's $195.5 million.

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 $0.18. The five earnings estimates compiled by S&P Capital IQ anticipated $0.17 per share. GAAP EPS were $0.18 for Q3 against -$0.08 per share for the prior-year quarter.

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 37.9%, 240 basis points better than the prior-year quarter. Operating margin was 14.5%, 140 basis points better than the prior-year quarter. Net margin was 7.4%, 990 basis points better than the prior-year quarter.

Looking ahead
 Next quarter's average estimate for revenue is $167.0 million. On the bottom line, the average EPS estimate is $0.21.

Next year's average estimate for revenue is $626.0 million. The average EPS estimate is $0.65.

Investor sentiment
 The stock has a two-star rating (out of five) at Motley Fool CAPS, with 269 members out of 314 rating the stock outperform, and 45 members rating it underperform. Among 76 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 70 give Air Transport Services Group 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 Air Transport Services Group is outperform, with an average price target of $7.20.

The article Air Transport Services Group Beats Expectations But Takes A Step Back Anyway originally appeared on Fool.com.

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. The Motley Fool has no positions in the stocks mentioned above. 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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