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AMR Catches Analysts Sleeping Again

Friday - 7/19/2013, 2:00am  ET

AMR (OTCPK: AAMRQ) reported earnings on July 18. Here are the numbers you need to know.

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

Compared to the prior-year quarter, revenue was unchanged. Non-GAAP earnings per share increased significantly. GAAP earnings per share expanded.

Margins expanded across the board.

Revenue details
AMR logged revenue of $6.45 billion. The two analysts polled by S&P Capital IQ predicted net sales of $6.52 billion on the same basis. GAAP reported sales were the same as the prior-year quarter's.

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 $0.92. The one earnings estimate compiled by S&P Capital IQ predicted $0.80 per share. Non-GAAP EPS of $0.92 for Q2 were 229% higher than the prior-year quarter's $0.28 per share. GAAP EPS were $0.59 for Q2 versus -$0.72 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 28.1%, 460 basis points better than the prior-year quarter. Operating margin was 7.8%, 400 basis points better than the prior-year quarter. Net margin was 3.4%, 710 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $6.66 billion. On the bottom line, the average EPS estimate is $0.82.

Next year's average estimate for revenue is $25.53 billion. The average EPS estimate is $2.62.

Investor sentiment
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 602 members out of 1,035 rating the stock outperform, and 433 members rating it underperform. Among 221 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 108 give AMR a green thumbs-up, and 113 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on AMR is outperform, with an average price target of $9.50.

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This article was originally published as AMR Catches Analysts Sleeping Againon Fool.com

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