The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Williams Companies whiffed on both revenues and earnings per share.
Compared to the prior-year quarter, revenue dropped and GAAP earnings per share contracted to a loss.
Gross margin grew, operating margin grew, and net margin contracted.
Williams Companies tallied revenue of $2.10 billion. The six analysts polled by S&P Capital IQ expected to see revenue of $2.64 billion on the same basis. GAAP reported sales were 13% lower than the prior-year quarter's $2.42 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.36. The 12 earnings estimates compiled by S&P Capital IQ predicted $0.40 per share on the same basis. GAAP EPS were -$0.74 for Q4 compared to $0.28 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 30.7%, 380 basis points better than the prior-year quarter. Operating margin was 24.3%, 560 basis points better than the prior-year quarter. Net margin was -21.1%, 2,830 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $2.09 billion. On the bottom line, the average EPS estimate is $0.37.
Next year's average estimate for revenue is $8.01 billion. The average EPS estimate is $1.56.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 527 members rating the stock outperform and 23 members rating it underperform. Among 148 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 143 give Williams Companies 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 Companies is outperform, with an average price target of $34.22.
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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.