The 10-second takeaway
For the quarter ended March 31 (Q1), SJW missed estimates on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue contracted slightly. GAAP earnings per share grew.
Gross margins expanded, operating margins contracted, net margins grew.
SJW recorded revenue of $50.1 million. The three analysts polled by S&P Capital IQ predicted revenue of $54.1 million on the same basis. GAAP reported sales were the same as the prior-year quarter's.
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 $0.07. The three earnings estimates compiled by S&P Capital IQ forecast $0.12 per share. GAAP EPS of $0.07 for Q1 were 17% higher than the prior-year quarter's $0.06 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 57.1%, 230 basis points better than the prior-year quarter. Operating margin was 11.5%, 160 basis points worse than the prior-year quarter. Net margin was 2.6%, 40 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $69.0 million. On the bottom line, the average EPS estimate is $0.32.
Next year's average estimate for revenue is $276.5 million. The average EPS estimate is $1.33.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 99 members out of 105 rating the stock outperform, and six members rating it underperform. Among 29 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 29 give SJW a green thumbs-up, and give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on SJW is outperform, with an average price target of $29.25.
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