The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Pepco Holdings whiffed on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped and GAAP earnings per share grew significantly.
Margins grew across the board.
Pepco Holdings logged revenue of $1.48 billion. The one analyst polled by S&P Capital IQ expected net sales of $1.80 billion on the same basis. GAAP reported sales were 10% lower than the prior-year quarter's $1.64 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 $0.47. The 11 earnings estimates compiled by S&P Capital IQ forecast $0.42 per share. GAAP EPS of $0.49 for Q3 were 40% higher than the prior-year quarter's $0.35 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 33.8%, 830 basis points better than the prior-year quarter. Operating margin was 15.4%, 350 basis points better than the prior-year quarter. Net margin was 7.6%, 270 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $1.34 billion. On the bottom line, the average EPS estimate is $0.21.
Next year's average estimate for revenue is $5.53 billion. The average EPS estimate is $1.19.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 189 members out of 210 rating the stock outperform, and 21 members rating it underperform. Among 58 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 49 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 $20.06.
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