Westport Innovations Meets on the Top Line, Misses Where it Counts

Westport Innovations (Nasdaq: WPRT  ) reported earnings on Nov. 8. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Westport Innovations met expectations on revenues and missed expectations on earnings per share.

Compared to the prior-year quarter, revenue dropped slightly and GAAP loss per share grew.

Margins dropped across the board.

Revenue details
Westport Innovations tallied revenue of $77.2 million. The 11 analysts polled by S&P Capital IQ wanted to see net sales of $76.7 million on the same basis. GAAP reported sales were 6.0% lower than the prior-year quarter's $81.0 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 -$0.60. The 12 earnings estimates compiled by S&P Capital IQ anticipated -$0.41 per share. GAAP EPS were -$0.52 for Q3 versus -$0.27 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 27.8%, 750 basis points worse than the prior-year quarter. Operating margin was -27.6%, 2,470 basis points worse than the prior-year quarter. Net margin was -38.0%, 2,180 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $89.5 million. On the bottom line, the average EPS estimate is -$0.36.

Next year's average estimate for revenue is $356.8 million. The average EPS estimate is -$1.30.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 1,692 members out of 1,734 rating the stock outperform, and 42 members rating it underperform. Among 268 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 259 give Westport Innovations 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 Westport Innovations is outperform, with an average price target of $43.76.

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 owns shares of Westport Innovations. Motley Fool newsletter services recommend Westport Innovations. 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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  • Report this Comment On November 13, 2012, at 5:03 AM, clbjblk wrote:

    Another great subscription seller sure there will be a mark up some day, try to sell a subscription that does not have so much hype and side effects isn't cummins laying off 1500 people, I like when they promote an options play as a ten bagger. The man with a vision just buy some Lowes and ride the divys.

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