Air Transport Services Group Beats Analyst Estimates on EPS

Air Transport Services Group (Nasdaq: ATSG  ) reported earnings on Feb. 27. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Air Transport Services Group missed estimates on revenues and beat expectations on earnings per share.

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

Gross margins shrank, operating margins dropped, net margins were steady.

Revenue details
Air Transport Services Group chalked up revenue of $154.6 million. The four analysts polled by S&P Capital IQ predicted a top line of $159.0 million on the same basis. GAAP reported sales were 7.2% lower than the prior-year quarter's $166.5 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 four earnings estimates compiled by S&P Capital IQ predicted $0.13 per share. Non-GAAP EPS of $0.18 for Q4 were 14% lower than the prior-year quarter's $0.21 per share. (The prior-year quarter included -$0.01 per share in earnings from discontinued operations.) GAAP EPS of $0.19 for Q4 were 5.0% lower than the prior-year quarter's $0.20 per share. (The prior-year quarter included -$0.01 per share in earnings from discontinued operations.)

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 36.3%, 340 basis points worse than the prior-year quarter. Operating margin was 13.6%, 200 basis points worse than the prior-year quarter. Net margin was 7.8%, much about the same as the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $152.5 million. On the bottom line, the average EPS estimate is $0.14.

Next year's average estimate for revenue is $635.9 million. The average EPS estimate is $0.65.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 271 members out of 314 rating the stock outperform, and 43 members rating it underperform. Among 89 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 83 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 $6.33.

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