The 10-second takeaway
For the quarter ended June 30 (Q3), Inergy missed estimates on revenue and exceeded expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank and GAAP loss per share dropped.
Margins increased across the board.
Inergy recorded revenue of $371.6 million. The six analysts polled by S&P Capital IQ expected revenue of $399.0 million on the same basis. GAAP reported sales were 4.4% lower than the prior-year quarter's $388.7 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 -$0.08. The seven earnings estimates compiled by S&P Capital IQ anticipated -$0.19 per share. GAAP EPS were -$0.17 for Q3 compared to -$0.32 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 35.0%, 490 basis points better than the prior-year quarter. Operating margin was 2.4%, 460 basis points better than the prior-year quarter. Net margin was -5.9%, 320 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $408.2 million. On the bottom line, the average EPS estimate is -$0.16.
Next year's average estimate for revenue is $2.13 billion. The average EPS estimate is $0.17.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 222 members out of 239 rating the stock outperform, and 17 members rating it underperform. Among 71 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 66 give Inergy a green thumbs-up, and five give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Inergy is hold, with an average price target of $21.20.
Can your retirement portfolio provide you with enough income to last? You'll need more than Inergy. Learn about crafting a smarter retirement plan in "The Shocking Can't-Miss Truth About Your Retirement." Click here for instant access to this free report.
- Add Inergy to My Watchlist.
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.