The 10-second takeaway
For the quarter ended March 31 (Q1), Calpine missed estimates on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted significantly and GAAP loss per share dropped.
Margins expanded across the board.
Calpine booked revenue of $1.24 billion. The six analysts polled by S&P Capital IQ looked for sales of $1.33 billion on the same basis. GAAP reported sales were 18% lower than the prior-year quarter's $1.50 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 -$0.14. The nine earnings estimates compiled by S&P Capital IQ forecast -$0.11 per share. GAAP EPS were -$0.02 for Q1 against -$0.61 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 31.0%, 1,820 basis points better than the prior-year quarter. Operating margin was 15.0%, 1,440 basis points better than the prior-year quarter. Net margin was -0.7%, 1,910 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $1.16 billion. On the bottom line, the average EPS estimate is -$0.07.
Next year's average estimate for revenue is $6.38 billion. The average EPS estimate is $0.29.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 215 members out of 229 rating the stock outperform, and 14 members rating it underperform. Among 76 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 70 give Calpine a green thumbs-up, and six give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Calpine is outperform, with an average price target of $19.08.
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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.