The 10-second takeaway
For the quarter ended March 31 (Q1), MGE Energy missed estimates on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted and GAAP earnings per share dropped.
Gross margins expanded, operating margins grew, net margins were steady.
MGE Energy logged revenue of $149.3 million. The one analyst polled by S&P Capital IQ wanted to see sales of $158.2 million on the same basis. GAAP reported sales were 9.3% lower than the prior-year quarter's $164.6 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 $0.69. The one earnings estimate compiled by S&P Capital IQ anticipated $0.65 per share. GAAP EPS of $0.69 for Q1 were 10% lower than the prior-year quarter's $0.77 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 28.9%, 120 basis points better than the prior-year quarter. Operating margin was 19.1%, 30 basis points better than the prior-year quarter. Net margin was 10.8%, about the same as the prior-year quarter.
Next quarter's average estimate for revenue is $118.3 million. On the bottom line, the average EPS estimate is $0.55.
Next year's average estimate for revenue is $544.1 million. The average EPS estimate is $2.55.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 58 members out of 60 rating the stock outperform, and two members rating it underperform. Among 22 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 21 give MGE Energy a green thumbs-up, and one give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on MGE Energy is underperform, with an average price target of $42.00.
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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.