The 10-second takeaway
For the quarter ended June 30 (Q2), Vectren beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased. Non-GAAP earnings per share expanded. GAAP earnings per share contracted to a loss.
Margins dropped across the board.
Vectren recorded revenue of $531.0 million. The three analysts polled by S&P Capital IQ expected revenue of $509.1 million on the same basis. GAAP reported sales were 13% higher than the prior-year quarter's $470.6 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 $0.33. The seven earnings estimates compiled by S&P Capital IQ forecast $0.29 per share. Non-GAAP EPS of $0.33 for Q2 were 6.5% higher than the prior-year quarter's $0.31 per share. GAAP EPS were -$0.07 for Q2 against $0.31 per share for the prior-year quarter.
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 65.7%, 530 basis points worse than the prior-year quarter. Operating margin was 10.9%, 400 basis points worse than the prior-year quarter. Net margin was -1.1%, 650 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $542.2 million. On the bottom line, the average EPS estimate is $0.49.
Next year's average estimate for revenue is $2.35 billion. The average EPS estimate is $1.98.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 90 members out of 95 rating the stock outperform, and five members rating it underperform. Among 26 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 24 give Vectren a green thumbs-up, and two give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Vectren is outperform, with an average price target of $36.80.
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