Walter Energy
The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Walter Energy missed estimates on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue contracted and GAAP earnings per share contracted to a loss.
Margins shrank across the board.
Revenue details
Walter Energy reported revenue of $612.0 million. The 14 analysts polled by S&P Capital IQ anticipated revenue of $649.0 million on the same basis. GAAP reported sales were 11% lower than the prior-year quarter's $685.1 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 $0.48. The 20 earnings estimates compiled by S&P Capital IQ predicted $0.52 per share. GAAP EPS were -$16.97 for Q3 against $1.21 per share for the prior-year quarter.
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 26.7%, 1,120 basis points worse than the prior-year quarter. Operating margin was 5.7%, 1,690 basis points worse than the prior-year quarter. Net margin was -173.5%, 18,460 basis points worse than the prior-year quarter.
Looking ahead
Next quarter's average estimate for revenue is $616.8 million. On the bottom line, the average EPS estimate is -$0.24.
Next year's average estimate for revenue is $2.57 billion. The average EPS estimate is $1.35.
Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,528 members out of 1,613 rating the stock outperform, and 85 members rating it underperform. Among 379 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 363 give Walter Energy a green thumbs-up, and 16 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Walter Energy is hold, with an average price target of $49.54.
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