The 10-second takeaway
For the quarter ended Dec. 31 (Q4), SJW beat expectations on revenue and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly and GAAP earnings per share dropped significantly.
Gross margin expanded, operating margin grew, and net margin dropped.
SJW logged revenue of $62.3 million. The two analysts polled by S&P Capital IQ anticipated a top line of $53.1 million on the same basis. GAAP reported sales were 23% higher than the prior-year quarter's $50.8 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 $0.35. The three earnings estimates compiled by S&P Capital IQ anticipated $0.12 per share. GAAP EPS of $0.35 for Q4 were 19% lower than the prior-year quarter's $0.43 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 58.7%, 70 basis points better than the prior-year quarter. Operating margin was 26.5%, 1,260 basis points better than the prior-year quarter. Net margin was 10.6%, 540 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $45.9 million. On the bottom line, the average EPS estimate is $0.03.
Next year's average estimate for revenue is $251.3 million. The average EPS estimate is $1.20.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 98 members out of 104 rating the stock outperform, and six members rating it underperform. Among 36 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 35 give SJW a green thumbs-up, and one gives it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on SJW is outperform, with an average price target of $27.00.
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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.