The 10-second takeaway
For the quarter ended Dec. 31 (Q1), Inergy crushed expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank significantly and GAAP earnings per share grew.
Gross margins dropped, operating margins dropped, net margins grew.
Inergy reported revenue of $438.6 million. The six analysts polled by S&P Capital IQ looked for revenue of $340.9 million on the same basis. GAAP reported sales were 34% lower than the prior-year quarter's $668.6 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 $0.09. The six earnings estimates compiled by S&P Capital IQ predicted $0.07 per share. GAAP EPS were $0.01 for Q1 versus -$0.03 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 18.2%, 880 basis points worse than the prior-year quarter. Operating margin was 2.6%, 480 basis points worse than the prior-year quarter. Net margin was 0.3%, 90 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $327.4 million. On the bottom line, the average EPS estimate is $0.10.
Next year's average estimate for revenue is $1.19 billion. The average EPS estimate is $0.35.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 218 members out of 233 rating the stock outperform, and 15 members rating it underperform. Among 66 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 61 give Inergy 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 Inergy is hold, with an average price target of $21.38.
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