The 10-second takeaway
For the quarter ended March 31 (Q1), Northeast Utilities beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly. Non-GAAP earnings per share expanded significantly. GAAP earnings per share grew significantly.
Gross margins dropped, operating margins increased, net margins expanded.
Northeast Utilities reported revenue of $2.00 billion. The four analysts polled by S&P Capital IQ expected to see sales of $1.86 billion on the same basis. GAAP reported sales were 81% higher than the prior-year quarter's $1.10 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 $0.73. The 12 earnings estimates compiled by S&P Capital IQ forecast $0.65 per share. Non-GAAP EPS of $0.73 for Q1 were 30% higher than the prior-year quarter's $0.56 per share. GAAP EPS of $0.72 for Q1 were 29% higher than the prior-year quarter's $0.56 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 37.2%, much worse than the prior-year quarter. Operating margin was 22.7%, 150 basis points better than the prior-year quarter. Net margin was 11.4%, 240 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $1.58 billion. On the bottom line, the average EPS estimate is $0.49.
Next year's average estimate for revenue is $7.27 billion. The average EPS estimate is $2.53.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 117 members out of 128 rating the stock outperform, and 11 members rating it underperform. Among 33 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 33 give Northeast Utilities 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 Northeast Utilities is outperform, with an average price target of $42.31.
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