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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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.