The 10-second takeaway
For the quarter ended June 30 (Q2), Otter Tail missed estimates on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped and GAAP earnings per share shrank to a loss.
Gross margins contracted, operating margins expanded, net margins dropped.
Otter Tail tallied revenue of $283.7 million. The three analysts polled by S&P Capital IQ expected to see revenue of $301.6 million on the same basis. GAAP reported sales were 10% lower than the prior-year quarter's $317.0 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 $0.29. The four earnings estimates compiled by S&P Capital IQ averaged $0.21 per share. GAAP EPS were -$0.49 for Q2 compared to $0.51 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 13.8%, 810 basis points worse than the prior-year quarter. Operating margin was 7.7%, 310 basis points better than the prior-year quarter. Net margin was -6.1%, 1,200 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $312.4 million. On the bottom line, the average EPS estimate is $0.37.
Next year's average estimate for revenue is $1.16 billion. The average EPS estimate is $1.16.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 973 members out of 1,000 rating the stock outperform, and 27 members rating it underperform. Among 278 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 273 give Otter Tail 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 Otter Tail is hold, with an average price target of $23.17.
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