The Gory Details on UNS Energy's Double Miss

UNS Energy (NYS: UNS) reported earnings on Nov. 2. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Sep. 30 (Q3), UNS Energy missed slightly on revenues and missed estimates on earnings per share.

Compared to the prior-year quarter, revenue shrank and GAAP earnings per share dropped significantly.


Margins dropped across the board.

Revenue details
UNS Energy notched revenue of $437.3 million. The two analysts polled by S&P Capital IQ expected to see sales of $445.7 million on the same basis. GAAP reported sales were 3.0% lower than the prior-year quarter's $450.9 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $1.21. The five earnings estimates compiled by S&P Capital IQ predicted $1.23 per share. GAAP EPS of $1.21 for Q3 were 17% lower than the prior-year quarter's $1.46 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 37.3%, 200 basis points worse than the prior-year quarter. Operating margin was 24.3%, 310 basis points worse than the prior-year quarter. Net margin was 11.6%, 160 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $326.9 million. On the bottom line, the average EPS estimate is $0.15.

Next year's average estimate for revenue is $1.44 billion. The average EPS estimate is $2.21.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 63 members out of 66 rating the stock outperform, and three members rating it underperform. Among 22 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 21 give UNS Energy a green thumbs-up, and one give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on UNS Energy is outperform, with an average price target of $43.40.

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The article The Gory Details on UNS Energy's Double Miss originally appeared on Fool.com.

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. The Motley Fool has no positions in the stocks mentioned above. Motley Fool newsletter services recommend UniSource Energy. 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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