Connecticut Water Service
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Connecticut Water Service missed estimates on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank slightly, and GAAP earnings per share expanded.
Margins increased across the board.
Connecticut Water Service logged revenue of $15.4 million. The six analysts polled by S&P Capital IQ anticipated sales of $16.1 million on the same basis. GAAP reported sales were 1.7% lower than the prior-year quarter's $15.7 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 $0.21. The six earnings estimates compiled by S&P Capital IQ forecast $0.19 per share. GAAP EPS of $0.21 for Q4 were 5.0% higher than the prior-year quarter's $0.20 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 46.8%, 60 basis points better than the prior-year quarter. Operating margin was 22.7%, 400 basis points better than the prior-year quarter. Net margin was 11.9%, 70 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $17.6 million. On the bottom line, the average EPS estimate is $0.23.
Next year's average estimate for revenue is $80.9 million. The average EPS estimate is $1.39.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 44 members rating the stock outperform and three members rating it underperform. Among 17 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 16 give Connecticut Water Service 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 Connecticut Water Service is outperform, with an average price target of $28.50.
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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.