The 10-second takeaway
For the quarter ended June 30 (Q2), Williams Partners whiffed on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue dropped and GAAP earnings per share dropped significantly.
Margins dropped across the board.
Williams Partners reported revenue of $1.58 billion. The five analysts polled by S&P Capital IQ foresaw revenue of $1.82 billion on the same basis. GAAP reported sales were 5.3% lower than the prior-year quarter's $1.67 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 $0.29. The nine earnings estimates compiled by S&P Capital IQ anticipated $0.45 per share. GAAP EPS of $0.29 for Q2 were 75% lower than the prior-year quarter's $1.16 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 26.5%, 390 basis points worse than the prior-year quarter. Operating margin was 16.8%, 760 basis points worse than the prior-year quarter. Net margin was 12.2%, 800 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $1.97 billion. On the bottom line, the average EPS estimate is $0.64.
Next year's average estimate for revenue is $7.15 billion. The average EPS estimate is $2.42.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 255 members out of 268 rating the stock outperform, and 13 members rating it underperform. Among 90 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 85 give Williams Partners 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 Williams Partners is outperform, with an average price target of $63.75.
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