Orient-Express Hotels Beats on Both Top and Bottom Lines

Seth Jayson, The Motley Fool
Updated

Orient-Express Hotels (NYS: OEH) reported earnings on July 31. Here are the numbers you need to know.

The 10-second takeaway
 For the quarter ended June 30 (Q2), Orient-Express Hotels beat slightly on revenues and beat expectations on earnings per share.

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


Margins increased across the board.

Revenue details
 Orient-Express Hotels notched revenue of $174.3 million. The five analysts polled by S&P Capital IQ expected to see a top line of $172.0 million on the same basis. GAAP reported sales were 7.8% higher than the prior-year quarter's $161.7 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.

EPS details
 EPS came in at $0.17. The six earnings estimates compiled by S&P Capital IQ anticipated $0.14 per share. GAAP EPS of $0.17 for Q2 were 55% higher than the prior-year quarter's $0.11 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.

Margin details
 For the quarter, gross margin was 71.9%, much better than the prior-year quarter. Operating margin was 59.4%, much better than the prior-year quarter. Net margin was 10.0%, 270 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
 Next quarter's average estimate for revenue is $173.4 million. On the bottom line, the average EPS estimate is $0.18.

Next year's average estimate for revenue is $587.8 million. The average EPS estimate is $0.21.

Investor sentiment
 The stock has a two-star rating (out of five) at Motley Fool CAPS, with 78 members out of 102 rating the stock outperform, and 24 members rating it underperform. Among 36 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 32 give Orient-Express Hotels a green thumbs-up, and four give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Orient-Express Hotels is outperform, with an average price target of $11.88.

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The article Orient-Express Hotels Beats on Both Top and Bottom Lines 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. 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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