Northeast Utilities
The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Northeast Utilities missed estimates on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share grew significantly.
Margins grew across the board.
Revenue details
Northeast Utilities booked revenue of $1.86 billion. The four analysts polled by S&P Capital IQ hoped for revenue of $1.93 billion on the same basis. GAAP reported sales were 67% higher than the prior-year quarter's $1.11 billion.
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 $0.70. The 12 earnings estimates compiled by S&P Capital IQ anticipated $0.68 per share. GAAP EPS of $0.66 for Q3 were 29% higher than the prior-year quarter's $0.51 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 44.0%, 660 basis points better than the prior-year quarter. Operating margin was 24.5%, 460 basis points better than the prior-year quarter. Net margin was 11.2%, 310 basis points better than the prior-year quarter.
Looking ahead
Next quarter's average estimate for revenue is $1.89 billion. On the bottom line, the average EPS estimate is $0.63.
Next year's average estimate for revenue is $6.90 billion. The average EPS estimate is $2.30.
Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 116 members out of 124 rating the stock outperform, and eight members rating it underperform. Among 37 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 36 give Northeast Utilities a green thumbs-up, and one give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Northeast Utilities is outperform, with an average price target of $40.38.
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