The 10-second takeaway
For the quarter ended Dec. 31 (Q1), Inergy beat expectations on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue increased, and GAAP earnings per share contracted to a loss.
Margins shrank across the board.
Inergy reported revenue of $668.6 million. The five analysts polled by S&P Capital IQ expected revenue of $576.4 million. Sales were 12% higher than the prior-year quarter's $596.0 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $0.21. The eight earnings estimates compiled by S&P Capital IQ predicted $0.22 per share on the same basis. GAAP EPS were -$0.42 for Q1 against $0.72 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 27.0%, 740 basis points worse than the prior-year quarter. Operating margin was 7.4%, 650 basis points worse than the prior-year quarter. Net margin was -0.6%, 1,180 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $676.0 million. On the bottom line, the average EPS estimate is $0.54.
Next year's average estimate for revenue is $2.02 billion. The average EPS estimate is $0.41.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 230 members out of 243 rating the stock outperform, and 14 members rating it underperform. Among 78 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 75 give Inergy a green thumbs-up, and three give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Inergy is hold, with an average price target of $29.25.
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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. 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.