The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Williams Companies whiffed on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue contracted significantly and GAAP earnings per share dropped significantly.
Gross margins expanded, operating margins expanded, net margins dropped.
Williams Companies booked revenue of $1.75 billion. The five analysts polled by S&P Capital IQ expected revenue of $2.01 billion on the same basis. GAAP reported sales were 35% lower than the prior-year quarter's $2.70 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 13 earnings estimates compiled by S&P Capital IQ predicted $0.27 per share. GAAP EPS of $0.25 for Q3 were 46% lower than the prior-year quarter's $0.46 per share. (The prior-year quarter included -$0.01 per share in earnings from discontinued operations.)
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 30.0%, 450 basis points better than the prior-year quarter. Operating margin was 22.1%, 380 basis points better than the prior-year quarter. Net margin was 8.8%, 130 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $2.08 billion. On the bottom line, the average EPS estimate is $0.30.
Next year's average estimate for revenue is $7.90 billion. The average EPS estimate is $1.17.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 519 members out of 541 rating the stock outperform, and 22 members rating it underperform. Among 119 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 113 give Williams Companies a green thumbs-up, and six give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Williams Companies is outperform, with an average price target of $35.54.
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