The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Williams Companies whiffed on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue dropped. Non-GAAP earnings per share dropped significantly. GAAP earnings per share grew.
Gross margins increased, operating margins expanded, net margins dropped.
Williams Companies recorded revenue of $1.90 billion. The five analysts polled by S&P Capital IQ expected revenue of $2.11 billion on the same basis. GAAP reported sales were 11276% lower than the prior-year quarter's -$17.0 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 $0.25. The 13 earnings estimates compiled by S&P Capital IQ predicted $0.26 per share. Non-GAAP EPS of $0.25 for Q4 were 40% lower than the prior-year quarter's $0.42 per share. (The prior-year quarter included -$0.67 per share in earnings from discontinued operations.) GAAP EPS were $0.23 for Q4 against -$0.74 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 38.9%, 182,710 basis points better than the prior-year quarter. Operating margin was 20.0%, 192,590 basis points better than the prior-year quarter. Net margin was 7.8%, 260,400 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $2.13 billion. On the bottom line, the average EPS estimate is $0.28.
Next year's average estimate for revenue is $8.48 billion. The average EPS estimate is $1.15.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 525 members out of 546 rating the stock outperform, and 21 members rating it underperform. Among 125 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 121 give Williams Companies a green thumbs-up, and four give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Williams Companies is outperform, with an average price target of $39.00.
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