The 10-second takeaway
For the quarter ended March 31 (Q1), Otter Tail missed estimates on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped significantly. GAAP earnings per share grew significantly.
Gross margins contracted, operating margins grew, net margins grew.
Otter Tail logged revenue of $218.0 million. The three analysts polled by S&P Capital IQ foresaw sales of $224.6 million on the same basis. GAAP reported sales were 21% lower than the prior-year quarter's $277.6 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 $0.41. The four earnings estimates compiled by S&P Capital IQ anticipated $0.34 per share. GAAP EPS of $0.41 for Q1 were 105% higher than the prior-year quarter's $0.20 per share. (The prior-year quarter included -$0.06 per share in earnings from discontinued operations.)
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 19.3%, 50 basis points worse than the prior-year quarter. Operating margin was 12.5%, 610 basis points better than the prior-year quarter. Net margin was 7.0%, 440 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $224.2 million. On the bottom line, the average EPS estimate is $0.28.
Next year's average estimate for revenue is $889.7 million. The average EPS estimate is $1.41.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 916 members out of 941 rating the stock outperform, and 25 members rating it underperform. Among 301 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 294 give Otter Tail a green thumbs-up, and seven give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Otter Tail is hold, with an average price target of $26.67.
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