The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Walter Energy missed estimates on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted significantly. Non-GAAP earnings per share dropped to a loss. GAAP earnings per share dropped to a loss.
Margins dropped across the board.
Walter Energy booked revenue of $478.8 million. The 11 analysts polled by S&P Capital IQ predicted a top line of $503.6 million on the same basis. GAAP reported sales were 32% lower than the prior-year quarter's $704.0 million.
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 -$1.06. The 19 earnings estimates compiled by S&P Capital IQ anticipated -$0.90 per share. Non-GAAP EPS were -$1.06 for Q4 versus $1.34 per share for the prior-year quarter. GAAP EPS were -$1.13 for Q4 against $1.33 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 10.1%, 2,530 basis points worse than the prior-year quarter. Operating margin was -18.1%, 3,700 basis points worse than the prior-year quarter. Net margin was -14.8%, 2,670 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $594.4 million. On the bottom line, the average EPS estimate is -$0.62.
Next year's average estimate for revenue is $2.54 billion. The average EPS estimate is -$0.06.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,505 members out of 1,593 rating the stock outperform, and 88 members rating it underperform. Among 378 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 360 give Walter Energy a green thumbs-up, and 18 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Walter Energy is hold, with an average price target of $39.15.
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