The 10-second takeaway
For the quarter ended March 31 (Q1), Questar whiffed on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue contracted and GAAP earnings per share increased.
Margins increased across the board.
Questar reported revenue of $425.7 million. The two analysts polled by S&P Capital IQ wanted to see revenue of $492.2 million on the same basis. GAAP reported sales were 9.4% lower than the prior-year quarter's $470.0 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 $0.42. The nine earnings estimates compiled by S&P Capital IQ predicted $0.43 per share. GAAP EPS of $0.42 for Q1 were 7.7% higher than the prior-year quarter's $0.39 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 47.5%, 600 basis points better than the prior-year quarter. Operating margin was 30.2%, 410 basis points better than the prior-year quarter. Net margin was 17.7%, 280 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $240.9 million. On the bottom line, the average EPS estimate is $0.22.
Next year's average estimate for revenue is $1.34 billion. The average EPS estimate is $1.19.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 305 members out of 325 rating the stock outperform, and 20 members rating it underperform. Among 98 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 91 give Questar a green thumbs-up, and seven give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Questar is hold, with an average price target of $20.06.
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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.