MDU Resources Group Beats on Both Top and Bottom Lines

MDU Resources Group (NYSE: MDU  ) reported earnings on Feb. 4. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), MDU Resources Group beat slightly on revenues and beat expectations on earnings per share.

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

Gross margins grew, operating margins shrank, net margins dropped.

Revenue details
MDU Resources Group logged revenue of $1.08 billion. The two analysts polled by S&P Capital IQ expected revenue of $1.07 billion on the same basis. GAAP reported sales were 1.4% higher than the prior-year quarter's $1.07 billion.

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 $0.40. The nine earnings estimates compiled by S&P Capital IQ anticipated $0.39 per share. GAAP EPS were -$0.32 for Q4 versus $0.32 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 24.5%, 60 basis points better than the prior-year quarter. Operating margin was 11.3%, 60 basis points worse than the prior-year quarter. Net margin was -5.6%, 1,130 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $905.1 million. On the bottom line, the average EPS estimate is $0.22.

Next year's average estimate for revenue is $4.31 billion. The average EPS estimate is $1.33.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 241 members out of 253 rating the stock outperform, and 12 members rating it underperform. Among 65 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 61 give MDU Resources Group a green thumbs-up, and four give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on MDU Resources Group is outperform, with an average price target of $24.57.

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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..


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