The 10-second takeaway
For the quarter ended June 30 (Q2), Pepco Holdings whiffed on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue dropped significantly and GAAP earnings per share shrank significantly.
Gross margins grew, operating margins improved, and net margins dropped.
Pepco Holdings tallied revenue of $1.18 billion. The one analyst polled by S&P Capital IQ predicted revenue of $1.75 billion on the same basis. GAAP reported sales were 16% lower than the prior-year quarter's $1.41 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 $0.25. The eight earnings estimates compiled by S&P Capital IQ averaged $0.31 per share. GAAP EPS of $0.27 for Q2 were 36% lower than the prior-year quarter's $0.42 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 29.8%, 510 basis points better than the prior-year quarter. Operating margin was 13.1%, 150 basis points better than the prior-year quarter. Net margin was 5.3%, 140 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $1.85 billion. On the bottom line, the average EPS estimate is $0.42.
Next year's average estimate for revenue is $5.81 billion. The average EPS estimate is $1.21.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 194 members out of 215 rating the stock outperform, and 21 members rating it underperform. Among 57 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 48 give Pepco Holdings a green thumbs-up, and nine give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Pepco Holdings is hold, with an average price target of $19.56.
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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.
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