Piedmont Natural Gas Earnings Preview

Before you go, we thought you'd like these...
Before you go close icon

Piedmont Natural Gas (NYS: PNY) will look to avoid missing estimates for the fifth consecutive quarter when its earnings are released. The company will unveil its latest earnings on Monday. Piedmont Natural Gas is an energy services company whose principal business is the distribution of natural gas to residential, commercial, industrial, and power generation customers in portions of North Carolina, South Carolina, and Tennessee.

What analysts say:

  • Buy, sell, or hold?: Analysts think investors should stand pat on Piedmont Natural Gas with six of eight analysts rating it hold. Analysts don't like Piedmont Natural Gas as much as competitor Vectren overall. One out of seven analysts rate Vectren a buy compared to one of eight for Piedmont Natural Gas. That rating hasn't budged in three months as analysts have remained unchanged in their opinion of the stock.
  • Revenue forecasts: On average, analysts predict $200.1 million in revenue this quarter. That would represent a rise of 3.1% from the year-ago quarter.
  • Wall Street earnings expectations: The average analyst estimate is a loss of $0.13 per share. Estimates range from a loss of $0.16 to a loss of $0.10.

What our community says:
CAPS All-Stars are solidly behind the stock with 93.8% awarding it an outperform rating. The community at large backs the All-Stars with 91.3% giving it a rating of outperform. Fools are gung-ho about Piedmont Natural Gas, though the message boards have been quiet lately with only 42 posts in the past 30 days. Even with a robust four out of five stars, Piedmont Natural Gas' CAPS rating falls a little short of the community's upbeat outlook.

Management:
Revenue has fallen for the past three quarters.

Now let's look at how efficient management is at running the business. Traditionally, margins represent the efficiency with which companies capture portions of sales dollars. The following table shows gross and net margins over the past four quarters.

Quarter

Q3

Q2

Q1

Q4

Gross Margin

14.5%

29.0%

27.4%

14.5%

Net Margin

(4.4%)

12.1%

12.9%

(4.7%)

We can help you keep tabs on your companies with My Watchlist, our free, personalized service. Add Piedmont Natural Gas now.

Motley Fool newsletter services have recommended buying shares of Piedmont Natural Gas.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.

Earnings estimates provided by Zacks

At the time this article was published

Copyright © 1995 - 2011 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

From Our Partners