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.
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