CAI International Earnings: Everything You Must Know Now

CAI International Inc. (NYSE:CAP) delivered a profit and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company.

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CAI International Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 2.74% to $0.75 in the quarter versus EPS of $0.73 in the year-earlier quarter.

Revenue: Rose 29.31% to $50.96 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: CAI International Inc. reported adjusted EPS income of $0.75 per share. By that measure, the company missed the mean analyst estimate of $0.76. It missed the average revenue estimate of $51.35 million.

Quoting Management: Victor Garcia, Chief Executive Officer of CAI, commented, “We continued to report strong results in the first quarter of 2013. During the quarter we successfully completed the purchase of two managed portfolios for a total purchase price of $68 million, which will add to our financial results over the remainder of the year. We were also very active in the refinancing of our existing debt. As a result of our refinancing efforts we wrote off $1.1 million of deferred financing costs but in the process have now fixed interest rates on 57% of our outstanding debt at an average rate of 3.3% and have significantly decreased the cost of our floating rate debt under our revolving credit facility. Excluding the write-off of $1.1 million of deferred financing costs associated with our refinancing activities, our net income was $17.0 million, an 18% increase from the $14.4 million reported in the first quarter of 2012.”

Key Stats (on next page)…

Revenue increased 2.23% from $49.85 million in the previous quarter. EPS decreased 11.76% from $0.85 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.88 to a profit $0.86. For the current year, the average estimate has moved down from a profit of $3.63 to a profit of $3.60 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)