The 10-second takeaway
For the quarter ended Dec. 31 (Q4), NSTAR missed estimates on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped slightly and GAAP earnings per share expanded significantly.
Margins increased across the board.
NSTAR tallied revenue of $677.2 million. The two analysts polled by S&P Capital IQ looked for revenue of $736.8 million. Sales were 2.5% lower than the prior-year quarter's $697.0 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $0.53. The eight earnings estimates compiled by S&P Capital IQ forecast $0.52 per share on the same basis. GAAP EPS of $0.52 for Q4 were 18% higher than the prior-year quarter's $0.44 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 40.4%, 380 basis points better than the prior-year quarter. Operating margin was 17.0%, 120 basis points better than the prior-year quarter. Net margin was 8.3%, 130 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $803.0 million. On the bottom line, the average EPS estimate is $0.63.
Next year's average estimate for revenue is $3.04 billion. The average EPS estimate is $2.75.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 89 members out of 94 rating the stock outperform, and five members rating it underperform. Among 26 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 26 give NSTAR a green thumbs-up.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on NSTAR is hold, with an average price target of $45.67.
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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.