The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Black Hills whiffed on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank. Non-GAAP earnings per share grew. GAAP earnings per share grew.
Margins grew across the board.
Black Hills reported revenue of $318.9 million. The two analysts polled by S&P Capital IQ hoped for revenue of $365.3 million on the same basis. GAAP reported sales were 12% lower than the prior-year quarter's $361.2 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 $0.68. The five earnings estimates compiled by S&P Capital IQ anticipated $0.63 per share. Non-GAAP EPS of $0.68 for Q4 were 9.7% higher than the prior-year quarter's $0.62 per share. (The prior-year quarter included $0.16 per share in earnings from discontinued operations.) GAAP EPS of $0.70 for Q4 were 15% higher than the prior-year quarter's $0.61 per share. (The prior-year quarter included $0.16 per share in earnings from discontinued operations.)
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 36.5%, 890 basis points better than the prior-year quarter. Operating margin was 23.0%, 860 basis points better than the prior-year quarter. Net margin was 9.6%, 250 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $378.4 million. On the bottom line, the average EPS estimate is $0.76.
Next year's average estimate for revenue is $1.41 billion. The average EPS estimate is $2.30.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 91 members out of 102 rating the stock outperform, and 11 members rating it underperform. Among 42 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 40 give Black Hills 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 Black Hills is outperform, with an average price target of $38.50.
Can your portfolio provide you with enough income to last through retirement? You'll need more than Black Hills. Learn how to maximize your investment income and "Secure Your Future With 9 Rock-Solid Dividend Stocks." Click here for instant access to this free report.
- Add Black Hills to My Watchlist.
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.