The 10-second takeaway
For the quarter ended June 30 (Q2), AGL Resources crushed expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly. GAAP earnings per share grew significantly.
Gross margins contracted, operating margins dropped, net margins grew.
AGL Resources recorded revenue of $904.0 million. The four analysts polled by S&P Capital IQ anticipated revenue of $736.0 million on the same basis. GAAP reported sales were 32% higher than the prior-year quarter's $686.0 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
EPS came in at $0.41. The eight earnings estimates compiled by S&P Capital IQ forecast $0.26 per share. GAAP EPS of $0.41 for Q2 were 46% higher than the prior-year quarter's $0.28 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
For the quarter, gross margin was 29.2%, 400 basis points worse than the prior-year quarter. Operating margin was 12.3%, 140 basis points worse than the prior-year quarter. Net margin was 5.4%, 40 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $682.8 million. On the bottom line, the average EPS estimate is $0.16.
Next year's average estimate for revenue is $4.39 billion. The average EPS estimate is $2.64.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on AGL Resources is hold, with an average price target of $41.50.
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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. 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.