NSTAR Misses on Revenues but Beats on EPS

NSTAR (NYS: NST) reported earnings Feb. 6. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), NSTAR missed estimates on revenues and beat expectations on earnings per share.

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

Margins increased across the board.

Revenue details
NSTAR tallied revenue of $677.2 million. The two analysts polled by S&P Capital IQ looked for revenue of $736.8 million. Sales were 2.5% lower than the prior-year quarter's $697.0 million.


Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.

EPS details
Non-GAAP EPS came in at $0.53. The eight earnings estimates compiled by S&P Capital IQ forecast $0.52 per share on the same basis. GAAP EPS of $0.52 for Q4 were 18% higher than the prior-year quarter's $0.44 per share.


Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 40.4%, 380 basis points better than the prior-year quarter. Operating margin was 17.0%, 120 basis points better than the prior-year quarter. Net margin was 8.3%, 130 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $803.0 million. On the bottom line, the average EPS estimate is $0.63.

Next year's average estimate for revenue is $3.04 billion. The average EPS estimate is $2.75.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 89 members out of 94 rating the stock outperform, and five members rating it underperform. Among 26 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 26 give NSTAR a green thumbs-up.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on NSTAR is hold, with an average price target of $45.67.

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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. 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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