The 10-second takeaway
For the quarter ended Sep. 30 (Q3), EnergySolutions beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded and GAAP earnings per share grew.
Margins increased across the board.
EnergySolutions reported revenue of $444.2 million. The five analysts polled by S&P Capital IQ expected sales of $429.4 million on the same basis. GAAP reported sales were 5.5% higher than the prior-year quarter's $421.0 million.
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 $0.17. The three earnings estimates compiled by S&P Capital IQ averaged $0.11 per share. GAAP EPS were $0.11 for Q3 against -$0.04 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 10.4%, 160 basis points better than the prior-year quarter. Operating margin was 3.2%, 200 basis points better than the prior-year quarter. Net margin was 2.3%, 320 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $478.2 million. On the bottom line, the average EPS estimate is $0.20.
Next year's average estimate for revenue is $1.79 billion. The average EPS estimate is $0.44.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 857 members out of 886 rating the stock outperform, and 29 members rating it underperform. Among 192 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 189 give EnergySolutions a green thumbs-up, and three give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on EnergySolutions is outperform, with an average price target of $4.60.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool owns shares of EnergySolutions. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.