Atlas Air Worldwide Holdings Beats Expectations But Takes A Step Back Anyway

Seth Jayson, The Motley Fool
Updated

Atlas Air Worldwide Holdings (NAS: AAWW) reported earnings on May 2. Here are the numbers you need to know.

The 10-second takeaway
 For the quarter ended March 31 (Q1), Atlas Air Worldwide Holdings missed estimates on revenues and beat expectations on earnings per share.

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


Gross margins contracted, operating margins grew, net margins grew.

Revenue details
 Atlas Air Worldwide Holdings logged revenue of $377.3 million. The seven analysts polled by S&P Capital IQ anticipated revenue of $391.2 million on the same basis. GAAP reported sales were 5.0% higher than the prior-year quarter's $359.3 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 $0.22. The nine earnings estimates compiled by S&P Capital IQ anticipated $0.16 per share. Non-GAAP EPS of $0.22 for Q1 were 57% lower than the prior-year quarter's $0.51 per share. GAAP EPS of $0.76 for Q1 were 58% higher than the prior-year quarter's $0.48 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 21.8%, 60 basis points worse than the prior-year quarter. Operating margin was 6.0%, 30 basis points better than the prior-year quarter. Net margin was 5.3%, 170 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
 Next quarter's average estimate for revenue is $428.7 million. On the bottom line, the average EPS estimate is $1.00.

Next year's average estimate for revenue is $1.79 billion. The average EPS estimate is $4.80.

Investor sentiment
 The stock has a three-star rating (out of five) at Motley Fool CAPS, with 94 members out of 109 rating the stock outperform, and 15 members rating it underperform. Among 31 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 29 give Atlas Air Worldwide Holdings a green thumbs-up, and two give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Atlas Air Worldwide Holdings is outperform, with an average price target of $57.14.

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The article Atlas Air Worldwide Holdings 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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