The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Westar Energy beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded and GAAP earnings per share expanded significantly.
Margins increased across the board.
Westar Energy logged revenue of $486.2 million. The three analysts polled by S&P Capital IQ looked for net sales of $468.2 million on the same basis. GAAP reported sales were 6.5% higher than the prior-year quarter's $456.7 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 $0.16. The eight earnings estimates compiled by S&P Capital IQ anticipated $0.15 per share. GAAP EPS of $0.16 for Q4 were 220% higher than the prior-year quarter's $0.05 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 40.5%, 80 basis points better than the prior-year quarter. Operating margin was 14.9%, 430 basis points better than the prior-year quarter. Net margin was 4.0%, 290 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $497.0 million. On the bottom line, the average EPS estimate is $0.28.
Next year's average estimate for revenue is $2.21 billion. The average EPS estimate is $1.96.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 156 members out of 164 rating the stock outperform, and eight members rating it underperform. Among 54 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 52 give Westar Energy a green thumbs-up, and two give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Westar Energy is outperform, with an average price target of $28.28.
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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.