Northwestern Beats on Both Top and Bottom Lines

Northwestern (NYS: NWE) reported earnings on July 25. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended June 30 (Q2), Northwestern beat expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue expanded. Non-GAAP earnings per share increased. GAAP earnings per share grew significantly.


Gross margins shrank, operating margins increased, net margins grew.

Revenue details
Northwestern reported revenue of $260.2 million. The two analysts polled by S&P Capital IQ expected to see a top line of $249.5 million on the same basis. GAAP reported sales were 6.4% higher than the prior-year quarter's $244.6 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 details
EPS came in at $0.35. The six earnings estimates compiled by S&P Capital IQ predicted $0.30 per share. Non-GAAP EPS of $0.35 for Q2 were 13% higher than the prior-year quarter's $0.31 per share. GAAP EPS of $0.37 for Q2 were 19% higher than the prior-year quarter's $0.31 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.

Margin details
For the quarter, gross margin was 58.9%, 170 basis points worse than the prior-year quarter. Operating margin was 12.6%, 90 basis points better than the prior-year quarter. Net margin was 5.5%, 80 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $245.7 million. On the bottom line, the average EPS estimate is $0.41.

Next year's average estimate for revenue is $1.12 billion. The average EPS estimate is $2.57.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 52 members out of 60 rating the stock outperform, and eight members rating it underperform. Among 24 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 22 give Northwestern 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 Northwestern is outperform, with an average price target of $44.40.

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The article Northwestern Beats on Both Top and Bottom Lines 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. 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.

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