Genesee & Wyoming Beats on Both Top and Bottom Lines

Genesee & Wyoming (NYS: GWR) reported earnings on Nov. 5. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Genesee & Wyoming beat slightly on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue expanded slightly and GAAP earnings per share dropped to a loss.


Margins dropped across the board.

Revenue details
Genesee & Wyoming chalked up revenue of $222.7 million. The 10 analysts polled by S&P Capital IQ expected to see net sales of $219.8 million on the same basis. GAAP reported sales were 2.5% higher than the prior-year quarter's $217.2 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 $0.74. The 14 earnings estimates compiled by S&P Capital IQ predicted $0.69 per share. GAAP EPS were -$0.47 for Q3 compared to $0.77 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 23.7%, 1,980 basis points worse than the prior-year quarter. Operating margin was 23.7%, 180 basis points worse than the prior-year quarter. Net margin was -8.8%, 2,400 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $223.1 million. On the bottom line, the average EPS estimate is $0.84.

Next year's average estimate for revenue is $868.9 million. The average EPS estimate is $2.81.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 837 members out of 861 rating the stock outperform, and 24 members rating it underperform. Among 283 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 279 give Genesee & Wyoming 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 Genesee & Wyoming is outperform, with an average price target of $71.71.

The article Genesee & Wyoming 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 of Motley 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. Motley Fool newsletter services recommend Genesee & Wyoming. 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.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Learn about investing from the comfort of your own home.

Portfolio Basics

Take the first steps to building your portfolio.

View Course »

Investment Strategies

Learn the strategies you need to build a winning portfolio

View Course »

Add a Comment

*0 / 3000 Character Maximum