The Gory Details of Piedmont Natural Gas' Earnings Miss

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

Piedmont Natural Gas (NYS: PNY) reported earnings on March 9. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Jan. 31 (Q1), Piedmont Natural Gas whiffed on revenue and whiffed on earnings per share.

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

Margins improved across the board.

Revenue details
Piedmont Natural Gas reported revenue of $471.8 million. The two analysts polled by S&P Capital IQ predicted a top line of $678.1 million on the same basis. GAAP reported sales were 28% lower than the prior-year quarter's $652.1 million.

anImage

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 $1.05. The four earnings estimates compiled by S&P Capital IQ predicted $1.20 per share. GAAP EPS of $1.05 for Q1 were 9.5% lower than the prior-year quarter's $1.16 per share.

anImage

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 34.3%, 690 basis points better than the prior-year quarter. Operating margin was 26.9%, 500 basis points better than the prior-year quarter. Net margin was 16.2%, 330 basis points better than the prior-year quarter.

Looking ahead
On the bottom line, the average EPS estimate is $0.70.

Next year's average estimate for revenue is $1.26 billion. The average EPS estimate is $1.63.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 171 members out of 187 rating the stock outperform, and 16 members rating it underperform. Among 53 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 51 give Piedmont Natural Gas 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 Piedmont Natural Gas is underperform, with an average price target of $30.71.

Can your portfolio provide you with enough income to last through retirement? You'll need more than Piedmont Natural Gas. Learn how to maximize your investment income in our free report: "Secure Your Future With 9 Rock-Solid Dividend Stocks." Click here for instant access to this free report.

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 ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. 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.

Copyright © 1995 - 2012 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