Black Hills Beats Analyst Estimates on EPS

Black Hills (NYSE: BKH  ) reported earnings on May 3. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), Black Hills met expectations on revenues and beat expectations on earnings per share.

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

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

Revenue details
Black Hills notched revenue of $380.7 million. The three analysts polled by S&P Capital IQ predicted revenue of $381.6 million on the same basis. GAAP reported sales were the same as the prior-year quarter's.

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 $0.87. The six earnings estimates compiled by S&P Capital IQ predicted $0.74 per share. Non-GAAP EPS of $0.87 for Q1 were 64% higher than the prior-year quarter's $0.53 per share. (The prior-year quarter included -$0.12 per share in earnings from discontinued operations.) GAAP EPS of $0.97 for Q1 were 43% higher than the prior-year quarter's $0.68 per share. (The prior-year quarter included -$0.12 per share in earnings from discontinued operations.)

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 30.1%, 310 basis points worse than the prior-year quarter. Operating margin was 21.0%, 190 basis points better than the prior-year quarter. Net margin was 11.3%, 320 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $277.1 million. On the bottom line, the average EPS estimate is $0.40.

Next year's average estimate for revenue is $1.35 billion. The average EPS estimate is $2.30.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 97 members out of 108 rating the stock outperform, and 11 members rating it underperform. Among 40 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 38 give Black Hills a green thumbs-up, and two give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Black Hills is hold, with an average price target of $41.83.

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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 position in any of the stocks mentioned. 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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