The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Otter Tail whiffed on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted significantly and GAAP earnings per share expanded.
Margins grew across the board.
Otter Tail logged revenue of $212.6 million. The two analysts polled by S&P Capital IQ anticipated sales of $257.4 million on the same basis. GAAP reported sales were 30% higher than the prior-year quarter's $163.8 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 $0.47. The four earnings estimates compiled by S&P Capital IQ averaged $0.30 per share. GAAP EPS were $0.08 for Q4 against -$1.24 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 18.4%, 2,360 basis points better than the prior-year quarter. Operating margin was 11.4%, 640 basis points better than the prior-year quarter. Net margin was 1.4%, 2,840 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $232.3 million. On the bottom line, the average EPS estimate is $0.31.
Next year's average estimate for revenue is $948.9 million. The average EPS estimate is $1.34.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 936 members out of 965 rating the stock outperform, and 29 members rating it underperform. Among 323 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 316 give Otter Tail a green thumbs-up, and seven give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Otter Tail is hold, with an average price target of $24.67.
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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 has no position in any of the stocks mentioned. 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.