The 10-second takeaway
For the quarter ended March 31 (Q1), Williams Partners whiffed on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue expanded and GAAP earnings per share shrank significantly.
Margins improved across the board.
Williams Partners booked revenue of $1.69 billion. The five analysts polled by S&P Capital IQ expected a top line of $2.01 billion on the same basis. GAAP reported sales were 6.7% higher than the prior-year quarter's $1.58 billion.
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 $0.85. The 11 earnings estimates compiled by S&P Capital IQ anticipated $0.90 per share. GAAP EPS of $0.85 for Q1 were 20% lower than the prior-year quarter's $1.06 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 32.7%, 270 basis points better than the prior-year quarter. Operating margin was 25.3%, 110 basis points better than the prior-year quarter. Net margin was 20.7%, 130 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $2.06 billion. On the bottom line, the average EPS estimate is $0.83.
Next year's average estimate for revenue is $8.06 billion. The average EPS estimate is $3.51.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 251 members out of 263 rating the stock outperform, and 12 members rating it underperform. Among 92 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 87 give Williams Partners a green thumbs-up, and five give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Williams Partners is outperform, with an average price target of $64.50.
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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.