The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Questar met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank slightly, and GAAP earnings per share shrank.
Gross margins expanded, operating margins expanded, and net margins dropped.
Questar recorded revenue of $354.8 million. The three analysts polled by S&P Capital IQ expected net sales of $354 million on the same basis. GAAP reported sales were 2.2% lower than the prior-year quarter's $362.7 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 $0.34. The 10 earnings estimates compiled by S&P Capital IQ predicted $0.33 per share. GAAP EPS of $0.34 for Q4 were 5.6% lower than the prior-year quarter's $0.36 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 51.5%, 280 basis points better than the prior-year quarter. Operating margin was 30.1%, 50 basis points better than the prior-year quarter. Net margin was 17.4%, 20 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $496 million. On the bottom line, the average EPS estimate is $0.43.
Next year's average estimate for revenue is $1.38 billion. The average EPS estimate is $1.19.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 308 members rating the stock outperform and 18 members rating it underperform. Among 111 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 104 give Questar a green thumbs-up, and seven give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Questar is hold, with an average price target of $19.94.
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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.