The 10-second takeaway
For the quarter ended March 31 (Q1), Williams Partners whiffed on revenues and beat slightly on earnings per share.
Compared to the prior-year quarter, revenue expanded. GAAP earnings per share contracted significantly.
Gross margins expanded, operating margins contracted, net margins shrank.
Williams Partners chalked up revenue of $1.76 billion. The five analysts polled by S&P Capital IQ expected to see a top line of $1.96 billion 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 came in at $0.50. The 12 earnings estimates compiled by S&P Capital IQ anticipated $0.49 per share. GAAP EPS of $0.50 for Q1 were 57% lower than the prior-year quarter's $1.16 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 40.5%, 780 basis points better than the prior-year quarter. Operating margin was 22.6%, 240 basis points worse than the prior-year quarter. Net margin was 18.3%, 240 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $1.97 billion. On the bottom line, the average EPS estimate is $0.43.
Next year's average estimate for revenue is $8.01 billion. The average EPS estimate is $1.82.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 265 members out of 279 rating the stock outperform, and 14 members rating it underperform. Among 98 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 93 give Williams Partners a green thumbs-up, and five give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Williams Partners is outperform, with an average price target of $57.33.
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