Questar Whiffs on Revenues
May 15th 2012 3:29PM
Updated May 15th 2012 3:30PM
Questar (NYS: STR) reported earnings on May 3. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended March 31 (Q1), Questar whiffed on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue contracted and GAAP earnings per share increased.
Margins increased across the board.
Questar reported revenue of $425.7 million. The two analysts polled by S&P Capital IQ wanted to see revenue of $492.2 million on the same basis. GAAP reported sales were 9.4% lower than the prior-year quarter's $470.0 million.
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 $0.42. The nine earnings estimates compiled by S&P Capital IQ predicted $0.43 per share. GAAP EPS of $0.42 for Q1 were 7.7% higher than the prior-year quarter's $0.39 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 47.5%, 600 basis points better than the prior-year quarter. Operating margin was 30.2%, 410 basis points better than the prior-year quarter. Net margin was 17.7%, 280 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $240.9 million. On the bottom line, the average EPS estimate is $0.22.
Next year's average estimate for revenue is $1.34 billion. The average EPS estimate is $1.19.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 305 members out of 325 rating the stock outperform, and 20 members rating it underperform. Among 98 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 91 give Questar a green thumbs-up, and seven give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Questar is hold, with an average price target of $20.06.
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At the time this article was published 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, backed by a real-money portfolio. 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.
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