The 10-second takeaway
For the quarter ended March 31 (Q1), Black Hills met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded. Non-GAAP earnings per share grew significantly. GAAP earnings per share grew significantly.
Gross margins shrank, operating margins expanded, net margins grew.
Black Hills notched revenue of $380.7 million. The three analysts polled by S&P Capital IQ predicted revenue of $381.6 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 $0.87. The six earnings estimates compiled by S&P Capital IQ predicted $0.74 per share. Non-GAAP EPS of $0.87 for Q1 were 64% higher than the prior-year quarter's $0.53 per share. (The prior-year quarter included -$0.12 per share in earnings from discontinued operations.) GAAP EPS of $0.97 for Q1 were 43% higher than the prior-year quarter's $0.68 per share. (The prior-year quarter included -$0.12 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 30.1%, 310 basis points worse than the prior-year quarter. Operating margin was 21.0%, 190 basis points better than the prior-year quarter. Net margin was 11.3%, 320 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $277.1 million. On the bottom line, the average EPS estimate is $0.40.
Next year's average estimate for revenue is $1.35 billion. The average EPS estimate is $2.30.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 97 members out of 108 rating the stock outperform, and 11 members rating it underperform. Among 40 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 38 give Black Hills a green thumbs-up, and two give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Black Hills is hold, with an average price target of $41.83.
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