MDU Resources Group
The 10-second takeaway
For the quarter ended June 30 (Q2), MDU Resources Group beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew. Non-GAAP earnings per share increased significantly. GAAP earnings per share shrank significantly.
Margins shrank across the board.
MDU Resources Group recorded revenue of $1.06 billion. The three analysts polled by S&P Capital IQ expected to see revenue of $1.03 billion on the same basis. GAAP reported sales were 9.6% higher than the prior-year quarter's $968.0 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 $0.25. The 10 earnings estimates compiled by S&P Capital IQ averaged $0.24 per share. Non-GAAP EPS of $0.25 for Q2 were 39% higher than the prior-year quarter's $0.18 per share. (The prior-year quarter included $0.03 per share in earnings from discontinued operations.) GAAP EPS of $0.24 for Q2 were 17% lower than the prior-year quarter's $0.29 per share. (The prior-year quarter included $0.03 per share in earnings from discontinued operations.)
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 22.1%, 50 basis points worse than the prior-year quarter. Operating margin was 8.6%, 90 basis points worse than the prior-year quarter. Net margin was 4.4%, 120 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $1.22 billion. On the bottom line, the average EPS estimate is $0.45.
Next year's average estimate for revenue is $4.32 billion. The average EPS estimate is $1.36.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 237 members out of 251 rating the stock outperform, and 14 members rating it underperform. Among 68 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 65 give MDU Resources Group a green thumbs-up, and three give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on MDU Resources Group is outperform, with an average price target of $27.67.
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