The 10-second takeaway
For the quarter ended March 31 (Q1), Walter Energy missed estimates on revenues and exceeded expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted significantly. Non-GAAP earnings per share dropped to a loss. GAAP earnings per share dropped to a loss.
Margins dropped across the board.
Walter Energy notched revenue of $491.3 million. The 10 analysts polled by S&P Capital IQ anticipated sales of $504.9 million on the same basis. GAAP reported sales were 22% lower than the prior-year quarter's $627.3 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 -$0.64. The 21 earnings estimates compiled by S&P Capital IQ averaged -$0.87 per share. Non-GAAP EPS were -$0.64 for Q1 versus $0.74 per share for the prior-year quarter. GAAP EPS were -$0.79 for Q1 versus $0.65 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 14.3%, much worse than the prior-year quarter. Operating margin was -11.4%, much worse than the prior-year quarter. Net margin was -10.1%, much worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $540.6 million. On the bottom line, the average EPS estimate is -$0.36.
Next year's average estimate for revenue is $2.23 billion. The average EPS estimate is -$1.20.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 1,489 members out of 1,585 rating the stock outperform, and 96 members rating it underperform. Among 304 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 280 give Walter Energy a green thumbs-up, and 24 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Walter Energy is hold, with an average price target of $36.60.
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