The 10-second takeaway
For the quarter ended Dec. 31 (Q4), EnergySolutions beat expectations on revenue and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue increased and GAAP earnings per share dropped to a loss.
Margins contracted across the board.
EnergySolutions logged revenue of $468.5 million. The six analysts polled by S&P Capital IQ predicted revenue of $426.2 million on the same basis. GAAP reported sales were 4.5% higher than the prior-year quarter's $448.5 million.
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 -$0.66. The four earnings estimates compiled by S&P Capital IQ predicted $0.11 per share on the same basis. GAAP EPS were -$2.28 for Q4 compared to $0.24 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 -8.4%, 2,080 basis points worse than the prior-year quarter. Operating margin was -16.1%, 2,080 basis points worse than the prior-year quarter. Net margin was -43.3%, 4,800 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $507.0 million. On the bottom line, the average EPS estimate is $0.05.
Next year's average estimate for revenue is $1.78 billion. The average EPS estimate is $0.37.
The stock has a five-star rating (out of five) at Motley Fool CAPS. Among 200 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 198 give EnergySolutions 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 EnergySolutions is outperform, with an average price target of $6.69.
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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. The Motley Fool owns shares of EnergySolutions. 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.