The 10-second takeaway
For the quarter ended March 31 (Q2), Inergy missed estimates on revenues and earnings per share.
Compared to the prior-year quarter, revenue shrank and GAAP earnings per share increased.
Gross margins dropped, operating margins shrank, and net margins expanded.
Inergy booked revenue of $662.4 million. The seven analysts polled by S&P Capital IQ looked for revenue of $677.7 million on the same basis. GAAP reported sales were 8.1% lower than the prior-year quarter's $720.5 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 seven earnings estimates compiled by S&P Capital IQ anticipated $0.52 per share. GAAP EPS of $0.31 for Q2 were 3.3% higher than the prior-year quarter's $0.30 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 30.2%, 350 basis points worse than the prior-year quarter. Operating margin was 10.4%, 540 basis points worse than the prior-year quarter. Net margin was 6.1%, 100 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $374.2 million. On the bottom line, the average EPS estimate is -$0.19.
Next year's average estimate for revenue is $2.09 billion. The average EPS estimate is $0.18.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 226 members out of 244 rating the stock outperform, and 18 members rating it underperform. Among 69 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 65 give Inergy a green thumbs-up, and four give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Inergy is hold, with an average price target of $18.
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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.