Integrys Energy Group Beats on EPS but GAAP Results Lag

Seth Jayson, The Motley Fool
Updated

Integrys Energy Group (NYS: TEG) reported earnings on Feb. 28. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Integrys Energy Group whiffed on revenues and beat expectations on earnings per share.

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

Margins dropped across the board.

Revenue details
Integrys Energy Group booked revenue of $1.13 billion. The two analysts polled by S&P Capital IQ looked for a top line of $1.74 billion on the same basis. GAAP reported sales were 12% lower than the prior-year quarter's $1.29 billion.

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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
Non-GAAP EPS came in at $1.01. The six earnings estimates compiled by S&P Capital IQ predicted $0.98 per share on the same basis. GAAP EPS of $0.49 for Q4 were 47% lower than the prior-year quarter's $0.92 per share.

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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 13.6%, 340 basis points worse than the prior-year quarter. Operating margin was 5.9%, 440 basis points worse than the prior-year quarter. Net margin was 3.4%, 220 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $1.62 billion. On the bottom line, the average EPS estimate is $1.68.

Next year's average estimate for revenue is $5.50 billion. The average EPS estimate is $3.58.

Investor sentiment
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Integrys Energy Group is hold, with an average price target of $51.50.

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At the time thisarticle 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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