The 10-second takeaway
For the quarter ended March 31 (Q1), Walter Energy missed estimates on revenues and whiffed on earnings per share.
Compared to the prior-year quarter, revenue increased significantly and GAAP earnings per share shrank significantly.
Margins dropped across the board.
Walter Energy logged revenue of $631.6 million. The 12 analysts polled by S&P Capital IQ anticipated a top line of $663.8 million on the same basis. GAAP reported sales were 55% higher than the prior-year quarter's $406.6 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.74. The 18 earnings estimates compiled by S&P Capital IQ predicted $0.88 per share. GAAP EPS of $0.65 for Q1 were 58% lower than the prior-year quarter's $1.53 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 31.7%, 1,460 basis points worse than the prior-year quarter. Operating margin was 13.3%, 1,860 basis points worse than the prior-year quarter. Net margin was 6.4%, 1,370 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $720.3 million. On the bottom line, the average EPS estimate is $1.55.
Next year's average estimate for revenue is $2.89 billion. The average EPS estimate is $4.44.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,486 members rating the stock outperform and 80 members rating it underperform. Among 405 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 395 give Walter Energy a green thumbs-up, and 10 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Walter Energy is outperform, with an average price target of $75.04.
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