The 10-second takeaway
For the quarter ended March 31 (Q1), Vectren beat expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue grew significantly. GAAP earnings per share shrank.
Margins shrank across the board.
Vectren reported revenue of $700.6 million. The three analysts polled by S&P Capital IQ foresaw revenue of $599.9 million on the same basis. GAAP reported sales were 16% higher than the prior-year quarter's $604.6 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 $0.61. The six earnings estimates compiled by S&P Capital IQ anticipated $0.66 per share. GAAP EPS of $0.61 for Q1 were 1.6% lower than the prior-year quarter's $0.62 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 58.1%, 200 basis points worse than the prior-year quarter. Operating margin was 15.2%, 300 basis points worse than the prior-year quarter. Net margin was 7.1%, 140 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $497.3 million. On the bottom line, the average EPS estimate is $0.30.
Next year's average estimate for revenue is $2.33 billion. The average EPS estimate is $2.01.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 90 members out of 95 rating the stock outperform, and five members rating it underperform. Among 25 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 24 give Vectren a green thumbs-up, and one give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Vectren is hold, with an average price target of $33.20.
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