Connecticut Water Service Beats on the Top Line
Connecticut Water Service (NAS: CTWS) reported earnings yesterday. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Connecticut Water Service missed estimates on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank slightly, and GAAP earnings per share expanded.
Margins increased across the board.
Connecticut Water Service logged revenue of $15.4 million. The six analysts polled by S&P Capital IQ anticipated sales of $16.1 million on the same basis. GAAP reported sales were 1.7% lower than the prior-year quarter's $15.7 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.21. The six earnings estimates compiled by S&P Capital IQ forecast $0.19 per share. GAAP EPS of $0.21 for Q4 were 5.0% higher than the prior-year quarter's $0.20 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 46.8%, 60 basis points better than the prior-year quarter. Operating margin was 22.7%, 400 basis points better than the prior-year quarter. Net margin was 11.9%, 70 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $17.6 million. On the bottom line, the average EPS estimate is $0.23.
Next year's average estimate for revenue is $80.9 million. The average EPS estimate is $1.39.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 44 members rating the stock outperform and three members rating it underperform. Among 17 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 16 give Connecticut Water Service 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 Connecticut Water Service is outperform, with an average price target of $28.50.
Over the decades, small-cap stocks like Connecticut Water Service have provided market-beating returns, provided they're value-priced and have solid businesses. Read about a pair of companies with a lock on their markets in "Too Small to Fail: Two Small Caps the Government Won't Let Go Broke." Click here for instant access to this free report.
- Add Connecticut Water Service to My Watchlist.
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.