The 10-second takeaway
For the quarter ended March 31 (Q1), Black Hills missed estimates on revenues and whiffed on earnings per share.
Compared to the prior-year quarter, revenue contracted and GAAP earnings per share was unchanged.
Margins expanded across the board.
Black Hills notched revenue of $365.9 million. The two analysts polled by S&P Capital IQ hoped for revenue of $385.1 million on the same basis. GAAP reported sales were 9.3% lower than the prior-year quarter's $403.3 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 three earnings estimates compiled by S&P Capital IQ anticipated $0.68 per share. GAAP EPS of $0.68 were the same as 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 33.2%, 940 basis points better than the prior-year quarter. Operating margin was 19.1%, 530 basis points better than the prior-year quarter. Net margin was 8.1%, 140 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $296.1 million. On the bottom line, the average EPS estimate is $0.34.
Next year's average estimate for revenue is $1.41 billion. The average EPS estimate is $2.12.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 94 members out of 105 rating the stock outperform, and 11 members rating it underperform. Among 29 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 27 give Black Hills 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 Black Hills is hold, with an average price target of $34.
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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.