AGL Resources Increases Sales but Misses Estimates on Earnings

Seth Jayson, The Motley Fool
Updated

AGL Resources (NYS: GAS) reported earnings on Feb. 6. Here are the numbers you need to know.

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

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


Gross margins dropped, operating margins shrank, net margins expanded.

Revenue details
 AGL Resources reported revenue of $1.22 billion. The four analysts polled by S&P Capital IQ wanted to see a top line of $1.50 billion on the same basis. GAAP reported sales were 54% higher than the prior-year quarter's $790.0 million.

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 $0.91. The six earnings estimates compiled by S&P Capital IQ averaged $0.96 per share. GAAP EPS of $0.84 for Q4 were 133% higher than the prior-year quarter's $0.36 per share.

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 29.1%, 470 basis points worse than the prior-year quarter. Operating margin was 17.1%, 640 basis points worse than the prior-year quarter. Net margin was 8.0%, 380 basis points better than the prior-year quarter.

Looking ahead
 Next quarter's average estimate for revenue is $1.54 billion. On the bottom line, the average EPS estimate is $1.36.

Next year's average estimate for revenue is $4.54 billion. The average EPS estimate is $2.99.

Investor sentiment

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on AGL Resources is hold, with an average price target of $41.22.

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The article AGL Resources Increases Sales but Misses Estimates on Earnings originally appeared on Fool.com.

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. The Motley Fool has no position in any of the stocks mentioned. 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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