AGL Resources Increases Sales but Misses Estimates on Earnings (GAS)

AGL Resources Increases Sales but Misses Estimates on Earnings

AGL Resources (NYSE: GAS ) reported earnings on Nov. 1. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Sep. 30 (Q3), AGL Resources whiffed on revenues and missed estimates on earnings per share.

Compared to the prior-year quarter, revenue expanded significantly and GAAP earnings per share grew.

Margins grew across the board.

Revenue details
AGL Resources booked revenue of $614.0 million. The four analysts polled by S&P Capital IQ expected revenue of $764.8 million on the same basis. GAAP reported sales were much higher than the prior-year quarter's $295.0 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 $0.09. The eight earnings estimates compiled by S&P Capital IQ predicted $0.22 per share. GAAP EPS were $0.08 for Q3 against -$0.04 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 30.5%, 410 basis points better than the prior-year quarter. Operating margin was 9.1%, 100 basis points better than the prior-year quarter. Net margin was 1.5%, 250 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $1.32 billion. On the bottom line, the average EPS estimate is $1.00.

Next year's average estimate for revenue is $4.33 billion. The average EPS estimate is $2.68.

Investor sentiment

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on AGL Resources is hold, with an average price target of $41.38.

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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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