The 10-second takeaway
For the quarter ended June 30 (Q2), Westport Innovations beat expectations on revenues and exceeded expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP loss per share contracted.
Margins expanded across the board.
Westport Innovations reported revenue of $104.5 million. The 15 analysts polled by S&P Capital IQ expected to see revenue of $97.3 million on the same basis. GAAP reported sales were much higher than the prior-year quarter's $44.9 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 -$0.20. The 15 earnings estimates compiled by S&P Capital IQ predicted -$0.28 per share. GAAP EPS were -$0.11 for Q2 compared to -$0.38 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 38.2%, 430 basis points better than the prior-year quarter. Operating margin was -2.1%, 2,190 basis points better than the prior-year quarter. Net margin was -5.7%, 3,470 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $105.7 million. On the bottom line, the average EPS estimate is -$0.32.
Next year's average estimate for revenue is $419.5 million. The average EPS estimate is -$1.28.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 1,623 members rating the stock outperform and 38 members rating it underperform. Among 271 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 263 give Westport Innovations a green thumbs-up, and eight give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Westport Innovations is outperform, with an average price target of $43.93.
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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 owns shares of Westport Innovations. Motley Fool newsletter services recommend Westport Innovations. 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.