The 10-second takeaway
For the quarter ended June 30 (Q2), Pepco Holdings whiffed on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue dropped significantly and GAAP earnings per share shrank significantly.
Gross margins grew, operating margins improved, and net margins dropped.
Pepco Holdings tallied revenue of $1.18 billion. The one analyst polled by S&P Capital IQ predicted revenue of $1.75 billion on the same basis. GAAP reported sales were 16% lower than the prior-year quarter's $1.41 billion.
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 $0.25. The eight earnings estimates compiled by S&P Capital IQ averaged $0.31 per share. GAAP EPS of $0.27 for Q2 were 36% lower than the prior-year quarter's $0.42 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 29.8%, 510 basis points better than the prior-year quarter. Operating margin was 13.1%, 150 basis points better than the prior-year quarter. Net margin was 5.3%, 140 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $1.85 billion. On the bottom line, the average EPS estimate is $0.42.
Next year's average estimate for revenue is $5.81 billion. The average EPS estimate is $1.21.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 194 members out of 215 rating the stock outperform, and 21 members rating it underperform. Among 57 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 48 give Pepco Holdings a green thumbs-up, and nine give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Pepco Holdings is hold, with an average price target of $19.56.
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