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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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.