SJW Crushes Earnings Estimates

Seth Jayson, The Motley Fool
Updated

SJW (NYS: SJW) reported earnings on Feb. 21. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), SJW beat expectations on revenue and crushed expectations on earnings per share.

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

Gross margin expanded, operating margin grew, and net margin dropped.

Revenue details
SJW logged revenue of $62.3 million. The two analysts polled by S&P Capital IQ anticipated a top line of $53.1 million on the same basis. GAAP reported sales were 23% higher than the prior-year quarter's $50.8 million.

anImage
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 $0.35. The three earnings estimates compiled by S&P Capital IQ anticipated $0.12 per share. GAAP EPS of $0.35 for Q4 were 19% lower than the prior-year quarter's $0.43 per share.

anImage
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 58.7%, 70 basis points better than the prior-year quarter. Operating margin was 26.5%, 1,260 basis points better than the prior-year quarter. Net margin was 10.6%, 540 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $45.9 million. On the bottom line, the average EPS estimate is $0.03.

Next year's average estimate for revenue is $251.3 million. The average EPS estimate is $1.20.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 98 members out of 104 rating the stock outperform, and six members rating it underperform. Among 36 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 35 give SJW a green thumbs-up, and one gives it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on SJW is outperform, with an average price target of $27.00.

Can your portfolio provide you with enough income to last through retirement? You'll need more than SJW. Learn how to maximize your investment income in our free report: "Secure Your Future With 11 Rock-Solid Dividend Stocks." Click here for instant access to this free report.

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.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Advertisement