The 10-second takeaway
For the quarter ended June 30 (Q3), Laclede Group whiffed on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted. Non-GAAP earnings per share dropped. GAAP earnings per share dropped significantly.
Gross margins increased, operating margins dropped, net margins shrank.
Laclede Group logged revenue of $165.3 million. The two analysts polled by S&P Capital IQ foresaw a top line of $228.9 million on the same basis. GAAP reported sales were 12% lower than the prior-year quarter's $186.8 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 $0.36. The four earnings estimates compiled by S&P Capital IQ anticipated $0.22 per share. Non-GAAP EPS of $0.36 for Q3 were 10% lower than the prior-year quarter's $0.40 per share. GAAP EPS of $0.25 for Q3 were 34% lower than the prior-year quarter's $0.38 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 23.6%, 410 basis points better than the prior-year quarter. Operating margin was 7.4%, 70 basis points worse than the prior-year quarter. Net margin was 4.0%, 50 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $216.9 million. On the bottom line, the average EPS estimate is -$0.06.
Next year's average estimate for revenue is $1.13 billion. The average EPS estimate is $2.52.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 146 members out of 161 rating the stock outperform, and 15 members rating it underperform. Among 36 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 31 give Laclede Group 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 Laclede Group is outperform, with an average price target of $48.50.
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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.