The 10-second takeaway
For the quarter ended June 30 (Q2), Williams missed estimates on revenue and met expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted significantly and GAAP earnings per share shrank significantly.
Margins dropped across the board.
Williams notched revenue of $1.85 billion. The six analysts polled by S&P Capital IQ predicted revenue of $1.97 billion on the same basis. GAAP reported sales were 31% lower than the prior-year quarter's $2.67 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 $0.22. The 10 earnings estimates compiled by S&P Capital IQ forecast $0.22 per share. GAAP EPS of $0.21 for Q2 were 45% lower than the prior-year quarter's $0.38 per share. (The prior-year quarter included -$0.01 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 26.9%, 50 basis points worse than the prior-year quarter. Operating margin was 18.0%, 250 basis points worse than the prior-year quarter. Net margin was 7.2%, 130 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $2.07 billion. On the bottom line, the average EPS estimate is $0.27.
Next year's average estimate for revenue is $8.04 billion. The average EPS estimate is $1.18.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 523 members out of 544 rating the stock outperform, and 21 members rating it underperform. Among 117 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 110 give Williams 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 Williams is outperform, with an average price target of $36.31.
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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. The Motley Fool has no positions in the stocks mentioned above. 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.