The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Vectren beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew slightly and GAAP earnings per share dropped.
Gross margins grew, operating margins were steady, net margins contracted.
Vectren booked revenue of $644.1 million. The two analysts polled by S&P Capital IQ expected a top line of $607.7 million on the same basis. GAAP reported sales were the same as the prior-year quarter's.
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 $0.52. The five earnings estimates compiled by S&P Capital IQ averaged $0.45 per share. GAAP EPS of $0.52 for Q4 were 8.8% lower than the prior-year quarter's $0.57 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 61.4%, 490 basis points better than the prior-year quarter. Operating margin was 14.1%, about the same as the prior-year quarter. Net margin was 6.6%, 80 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $640.7 million. On the bottom line, the average EPS estimate is $0.70.
Next year's average estimate for revenue is $2.33 billion. The average EPS estimate is $1.95.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 89 members out of 94 rating the stock outperform, and five members rating it underperform. Among 27 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 25 give Vectren a green thumbs-up, and two give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Vectren is hold, with an average price target of $31.80.
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