Rhino Resource Partners Beats Expectations But Takes A Step Back Anyway

Seth Jayson, The Motley Fool
Updated

Rhino Resource Partners (NYS: RNO) reported earnings on Feb. 28. Here are the numbers you need to know.

The 10-second takeaway
 For the quarter ended Dec. 31 (Q4), Rhino Resource Partners met expectations on revenues and beat expectations on earnings per share.

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


Margins contracted across the board.

Revenue details
 Rhino Resource Partners recorded revenue of $86.5 million. The two analysts polled by S&P Capital IQ anticipated a top line of $87.3 million on the same basis. GAAP reported sales were much higher than the prior-year quarter's $98.0 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 $0.33. The three earnings estimates compiled by S&P Capital IQ predicted $0.29 per share. Non-GAAP EPS of $0.33 for Q4 were 27% lower than the prior-year quarter's $0.45 per share. GAAP EPS of $331.16 for Q4 were much higher than the prior-year quarter's $0.45 per share.

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 28.7%, 220 basis points worse than the prior-year quarter. Operating margin was 10.4%, 390 basis points worse than the prior-year quarter. Net margin was 10.8%, 220 basis points worse than the prior-year quarter.

Looking ahead
 Next quarter's average estimate for revenue is $75.2 million. On the bottom line, the average EPS estimate is $0.22.

Next year's average estimate for revenue is $310.4 million. The average EPS estimate is $0.82.

Investor sentiment
 The stock has a one-star rating (out of five) at Motley Fool CAPS, with 18 members out of 23 rating the stock outperform, and five members rating it underperform. Among six CAPS All-Star picks (recommendations by the highest-ranked CAPS members), three give Rhino Resource Partners a green thumbs-up, and three give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Rhino Resource Partners is hold, with an average price target of $17.50.

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The article Rhino Resource Partners 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 position in any of the stocks mentioned. 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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