The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Williams Partners whiffed on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue dropped and GAAP earnings per share dropped significantly.
Margins dropped across the board.
Williams Partners logged revenue of $1.53 billion. The five analysts polled by S&P Capital IQ expected to see sales of $1.89 billion on the same basis. GAAP reported sales were 8.7% lower than the prior-year quarter's $1.67 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 $0.38. The 11 earnings estimates compiled by S&P Capital IQ anticipated $0.57 per share. GAAP EPS of $0.38 for Q3 were 68% lower than the prior-year quarter's $1.18 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 28.7%, 140 basis points worse than the prior-year quarter. Operating margin was 19.8%, 420 basis points worse than the prior-year quarter. Net margin was 15.5%, 490 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $1.92 billion. On the bottom line, the average EPS estimate is $0.59.
Next year's average estimate for revenue is $6.84 billion. The average EPS estimate is $2.22.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 262 members out of 275 rating the stock outperform, and 13 members rating it underperform. Among 94 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 89 give Williams Partners 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 Williams Partners is outperform, with an average price target of $60.58.
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