Walter Energy
The 10-second takeaway
For the quarter ended June 30 (Q2), Walter Energy beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped and GAAP earnings per share contracted significantly.
Margins dropped across the board.
Revenue details
Walter Energy chalked up revenue of $677.6 million. The 12 analysts polled by S&P Capital IQ foresaw a top line of $662.2 million on the same basis. GAAP reported sales were 12% lower than the prior-year quarter's $766.7 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 $0.43. The 16 earnings estimates compiled by S&P Capital IQ anticipated $0.40 per share. GAAP EPS of $0.51 for Q2 were 70% lower than the prior-year quarter's $1.71 per share.
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 28.3%, 1,140 basis points worse than the prior-year quarter. Operating margin was 10.0%, 1,100 basis points worse than the prior-year quarter. Net margin was 4.7%, 930 basis points worse than the prior-year quarter.
Looking ahead
Next quarter's average estimate for revenue is $731.8 million. On the bottom line, the average EPS estimate is $1.26.
Next year's average estimate for revenue is $2.79 billion. The average EPS estimate is $3.66.
Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,521 members rating the stock outperform and 86 members rating it underperform. Among 353 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 333 give Walter Energy a green thumbs-up, and 20 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 $72.22.
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