The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Middlesex Water beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share increased significantly.
Margins increased across the board.
Middlesex Water logged revenue of $32.4 million. The three analysts polled by S&P Capital IQ expected revenue of $30.8 million on the same basis. GAAP reported sales were 13% higher than the prior-year quarter's $28.7 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 $0.38. The three earnings estimates compiled by S&P Capital IQ forecast $0.34 per share. GAAP EPS of $0.38 for Q3 were 19% higher than the prior-year quarter's $0.32 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 51.8%, 300 basis points better than the prior-year quarter. Operating margin was 33.5%, 380 basis points better than the prior-year quarter. Net margin was 19.0%, 110 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $25.3 million. On the bottom line, the average EPS estimate is $0.17.
Next year's average estimate for revenue is $107.0 million. The average EPS estimate is $0.86.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 51 members out of 59 rating the stock outperform, and eight members rating it underperform. Among 23 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 18 give Middlesex Water 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 Middlesex Water is outperform, with an average price target of $20.00.
Can your retirement portfolio provide you with enough income to last? You'll need more than Middlesex Water. 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 Middlesex Water 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.