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MGE Energy Beats on Both Top and Bottom Lines

By Seth Jayson - Updated Apr 7, 2017 at 11:52AM

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Just the facts, Fool.

MGE Energy (Nasdaq: MGEE) reported earnings on Nov. 6. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Sep. 30 (Q3), MGE Energy beat expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue increased and GAAP earnings per share increased.

Margins grew across the board.

Revenue details
MGE Energy reported revenue of $137.8 million. The one analyst polled by S&P Capital IQ expected sales of $134.0 million on the same basis. GAAP reported sales were 3.2% higher than the prior-year quarter's $133.6 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $1.02. The one earnings estimate compiled by S&P Capital IQ averaged $0.89 per share. GAAP EPS of $1.02 for Q3 were 12% higher than the prior-year quarter's $0.91 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 39.2%, 100 basis points better than the prior-year quarter. Operating margin was 28.9%, 170 basis points better than the prior-year quarter. Net margin was 17.2%, 140 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $135.2 million. On the bottom line, the average EPS estimate is $0.55.

Next year's average estimate for revenue is $535.6 million. The average EPS estimate is $2.75.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 61 members out of 63 rating the stock outperform, and two members rating it underperform. Among 23 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 23 give MGE Energy a green thumbs-up, and give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on MGE Energy is hold, with an average price target of $50.00.

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Stocks Mentioned

MGE Energy, Inc. Stock Quote
MGE Energy, Inc.
MGEE
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