The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Otter Tail whiffed on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank, and GAAP earnings per share shrank to a loss.
Margins dropped across the board.
Otter Tail chalked up revenue of $263 million. The three analysts polled by S&P Capital IQ hoped for sales of $300.6 million. Sales were 14% lower than the prior-year quarter's $306 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $0.09. The four earnings estimates compiled by S&P Capital IQ averaged $0.22 per share on the same basis. GAAP EPS were -$1.23 for Q4 compared to $0.05 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 10.1%, 1,680 basis points worse than the prior-year quarter. Operating margin was 3.4%, 210 basis points worse than the prior-year quarter. Net margin was -16.8%, 1,750 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $320.0 million. On the bottom line, the average EPS estimate is $0.22.
Next year's average estimate for revenue is $1.31 billion. The average EPS estimate is $1.01.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 1,001 members rating the stock outperform, and 23 members rating it underperform. Among 362 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 358 give Otter Tail 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 Otter Tail is hold, with an average price target of $21.67.
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