American States Water
The 10-second takeaway
For the quarter ended March 31 (Q1), American States Water beat expectations on revenue and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue increased and GAAP earnings per share expanded significantly.
Gross margin dropped, operating margin expanded, and net margin expanded.
American States Water recorded revenue of $106.6 million. The five analysts polled by S&P Capital IQ expected a top line of $98.8 million on the same basis. GAAP reported sales were 13% higher than the prior-year quarter's $94.3 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 $0.53. The six earnings estimates compiled by S&P Capital IQ anticipated $0.39 per share. GAAP EPS of $0.53 for Q1 were 33% higher than the prior-year quarter's $0.40 per share. (The prior-year quarter included $0.03 per share in earnings from discontinued operations).
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 58.1%, 790 basis points worse than the prior-year quarter. Operating margin was 21.9%, 280 basis points better than the prior-year quarter. Net margin was 9.5%, 150 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $111.3 million. On the bottom line, the average EPS estimate is $0.65.
Next year's average estimate for revenue is $432.6 million. The average EPS estimate is $2.24.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 124 members out of 130 rating the stock outperform, and six members rating it underperform. Among 31 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 30 give American States Water 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 American States Water is outperform, with an average price target of $41.00.
Over the decades, small-cap stocks like American States Water have provided market-beating returns, provided they're value-priced and have solid businesses. Read about a pair of companies with a lock on their markets in "Too Small to Fail: Two Small Caps the Government Won't Let Go Broke." Click here for instant access to this free report.
- Add American States Water to My Watchlist.
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.