The 10-second takeaway
For the quarter ended March 31 (Q2), Inergy beat expectations on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped significantly. GAAP earnings per share shrank to a loss.
Margins contracted across the board.
Inergy logged revenue of $450.4 million. The three analysts polled by S&P Capital IQ looked for a top line of $427.1 million on the same basis. GAAP reported sales were 32% lower than the prior-year quarter's $662.4 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 -$0.04. The seven earnings estimates compiled by S&P Capital IQ predicted $0.06 per share. GAAP EPS were -$0.04 for Q2 compared to $0.31 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 18.6%, much worse than the prior-year quarter. Operating margin was 1.4%, 900 basis points worse than the prior-year quarter. Net margin was -1.3%, 740 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $419.3 million. On the bottom line, the average EPS estimate is $0.08.
Next year's average estimate for revenue is $1.62 billion. The average EPS estimate is $0.27.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 215 members out of 229 rating the stock outperform, and 14 members rating it underperform. Among 64 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 59 give Inergy a green thumbs-up, and five give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Inergy is hold, with an average price target of $22.00.
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