South Jersey Industries Whiffs on Revenues

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South Jersey Industries (NYS: SJI) reported earnings on May 4. Here are the numbers you need to know.

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

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


Margins grew across the board.

Revenue details
South Jersey Industries tallied revenue of $274.8 million. The one analyst polled by S&P Capital IQ predicted a top line of $356.4 million on the same basis. GAAP reported sales were 17% lower than the prior-year quarter's $331.9 million.

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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 $1.65. The two earnings estimates compiled by S&P Capital IQ anticipated $1.69 per share. GAAP EPS of $1.79 for Q1 were 4.1% higher than the prior-year quarter's $1.72 per share. (The prior-year quarter included -$0.01 per share in earnings from discontinued operations.)

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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 31.7%, 550 basis points better than the prior-year quarter. Operating margin was 26.7%, 470 basis points better than the prior-year quarter. Net margin was 19.7%, 420 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $174.6 million. On the bottom line, the average EPS estimate is $0.27.

Next year's average estimate for revenue is $877.5 million. The average EPS estimate is $3.20.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 56 members rating the stock outperform and nine members rating it underperform. Among 22 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 19 give South Jersey Industries a green thumbs-up, and three give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on South Jersey Industries is buy, with an average price target of $61.75.

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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 South Jersey Industries. 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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