The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Pepco Holdings whiffed on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped. Non-GAAP earnings per share grew significantly. GAAP earnings per share expanded significantly.
Margins expanded across the board.
Pepco Holdings logged revenue of $1.13 billion. The two analysts polled by S&P Capital IQ predicted revenue of $1.39 billion on the same basis. GAAP reported sales were 8.1% lower than the prior-year quarter's $1.23 billion.
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 $0.19. The 10 earnings estimates compiled by S&P Capital IQ forecast $0.19 per share. Non-GAAP EPS of $0.19 for Q4 were 27% higher than the prior-year quarter's $0.15 per share. (The prior-year quarter included -$0.02 per share in earnings from discontinued operations.) GAAP EPS of $0.18 for Q4 were 125% higher than the prior-year quarter's $0.08 per share. (The prior-year quarter included -$0.02 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 29.6%, 670 basis points better than the prior-year quarter. Operating margin was 10.8%, 340 basis points better than the prior-year quarter. Net margin was 3.8%, 230 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $1.31 billion. On the bottom line, the average EPS estimate is $0.28.
Next year's average estimate for revenue is $5.60 billion. The average EPS estimate is $1.21.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 188 members out of 211 rating the stock outperform, and 23 members rating it underperform. Among 57 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 49 give Pepco Holdings a green thumbs-up, and eight give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Pepco Holdings is hold, with an average price target of $20.48.
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