The 10-second takeaway
For the quarter ended March 31 (Q1), Williams Companies missed estimates on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue dropped. Non-GAAP earnings per share dropped significantly. GAAP earnings per share dropped significantly.
Gross margins increased, operating margins dropped, net margins dropped.
Williams Companies reported revenue of $1.81 billion. The six analysts polled by S&P Capital IQ foresaw sales of $1.96 billion on the same basis. GAAP reported sales were 10% lower than the prior-year quarter's $2.02 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 $0.22. The 13 earnings estimates compiled by S&P Capital IQ averaged $0.24 per share. Non-GAAP EPS of $0.22 for Q1 were 44% lower than the prior-year quarter's $0.39 per share. (The prior-year quarter included $0.23 per share in earnings from discontinued operations.) GAAP EPS of $0.23 for Q1 were 67% lower than the prior-year quarter's $0.70 per share. (The prior-year quarter included $0.23 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 42.0%, 880 basis points better than the prior-year quarter. Operating margin was 23.5%, 260 basis points worse than the prior-year quarter. Net margin was 8.9%, much worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $1.95 billion. On the bottom line, the average EPS estimate is $0.22.
Next year's average estimate for revenue is $7.91 billion. The average EPS estimate is $1.00.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 524 members out of 546 rating the stock outperform, and 22 members rating it underperform. Among 122 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 116 give Williams Companies a green thumbs-up, and six give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Williams Companies is outperform, with an average price target of $38.42.
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