The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Walter Energy missed estimates on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly, and GAAP earnings per share dropped significantly.
Margins dropped across the board.
Walter Energy booked revenue of $699.6 million. The 10 analysts polled by S&P Capital IQ predicted sales of $735.4 million on the same basis. GAAP reported sales were 76% higher than the prior-year quarter's $396.9 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 $1.34. The 17 earnings estimates compiled by S&P Capital IQ forecast $1.59 per share. GAAP EPS of $1.34 for Q4 were 22% lower than the prior-year quarter's $1.72 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 34.9%, 1,660 basis points worse than the prior-year quarter. Operating margin was 19.5%, 1,870 basis points worse than the prior-year quarter. Net margin was 12%, 1,110 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $817.5 million. On the bottom line, the average EPS estimate is $1.58.
Next year's average estimate for revenue is $3.13 billion. The average EPS estimate is $6.66.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,496 members rating the stock outperform and 82 members rating it underperform. Among 460 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 446 give Walter Energy a green thumbs-up, and 14 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Walter Energy is outperform, with an average price target of $93.60.
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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.