The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Otter Tail whiffed on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank, and GAAP earnings per share shrank to a loss.
Margins dropped across the board.
Otter Tail chalked up revenue of $263 million. The three analysts polled by S&P Capital IQ hoped for sales of $300.6 million. Sales were 14% lower than the prior-year quarter's $306 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $0.09. The four earnings estimates compiled by S&P Capital IQ averaged $0.22 per share on the same basis. GAAP EPS were -$1.23 for Q4 compared to $0.05 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 10.1%, 1,680 basis points worse than the prior-year quarter. Operating margin was 3.4%, 210 basis points worse than the prior-year quarter. Net margin was -16.8%, 1,750 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $320.0 million. On the bottom line, the average EPS estimate is $0.22.
Next year's average estimate for revenue is $1.31 billion. The average EPS estimate is $1.01.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 1,001 members rating the stock outperform, and 23 members rating it underperform. Among 362 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 358 give Otter Tail a green thumbs-up, and four 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 $21.67.
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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. Motley Fool newsletter services have recommended buying shares of Otter Tail. 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.