How the Wheels Came Off Black Hills' Bus

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

Black Hills (NYS: BKH) reported earnings on May 4. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), Black Hills missed estimates on revenues and whiffed on earnings per share.

Compared to the prior-year quarter, revenue contracted and GAAP earnings per share was unchanged.


Margins expanded across the board.

Revenue details
Black Hills notched revenue of $365.9 million. The two analysts polled by S&P Capital IQ hoped for revenue of $385.1 million on the same basis. GAAP reported sales were 9.3% lower than the prior-year quarter's $403.3 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 $0.53. The three earnings estimates compiled by S&P Capital IQ anticipated $0.68 per share. GAAP EPS of $0.68 were the same as the prior-year quarter.

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 33.2%, 940 basis points better than the prior-year quarter. Operating margin was 19.1%, 530 basis points better than the prior-year quarter. Net margin was 8.1%, 140 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $296.1 million. On the bottom line, the average EPS estimate is $0.34.

Next year's average estimate for revenue is $1.41 billion. The average EPS estimate is $2.12.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 94 members out of 105 rating the stock outperform, and 11 members rating it underperform. Among 29 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 27 give Black Hills 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 Black Hills is hold, with an average price target of $34.

Can your portfolio provide you with enough income to last through retirement? You'll need more than Black Hills. Learn how to maximize your investment income and "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. 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