The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Calpine beat expectations on revenues and beat slightly on earnings per share.
Compared to the prior-year quarter, revenue shrank and GAAP earnings per share grew significantly.
Margins expanded across the board.
Calpine booked revenue of $2.00 billion. The five analysts polled by S&P Capital IQ predicted sales of $1.88 billion on the same basis. GAAP reported sales were 9.6% lower than the prior-year quarter's $2.21 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 $0.46. The eight earnings estimates compiled by S&P Capital IQ predicted $0.45 per share. GAAP EPS of $0.94 for Q3 were 141% higher than the prior-year quarter's $0.39 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 44.9%, 1,780 basis points better than the prior-year quarter. Operating margin was 35.0%, 1,690 basis points better than the prior-year quarter. Net margin was 21.9%, 1,330 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $2.50 billion. On the bottom line, the average EPS estimate is -$0.01.
Next year's average estimate for revenue is $6.17 billion. The average EPS estimate is $0.33.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 218 members out of 233 rating the stock outperform, and 15 members rating it underperform. Among 71 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 65 give Calpine a green thumbs-up, and six give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Calpine is outperform, with an average price target of $21.12.
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