Connecticut Water Service Increases Sales but Misses Revenue Estimate

Seth Jayson, The Motley Fool
Updated

Connecticut Water Service (NAS: CTWS) reported earnings on March 18. 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 met expectations on earnings per share.

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


Gross margins grew, operating margins grew, net margins dropped.

Revenue details
 Connecticut Water Service notched revenue of $17.8 million. The five analysts polled by S&P Capital IQ predicted a top line of $18.5 million on the same basis. GAAP reported sales were 26% higher than the prior-year quarter's $15.4 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 $0.17. The five earnings estimates compiled by S&P Capital IQ predicted $0.17 per share. Non-GAAP EPS of $0.17 for Q4 were 19% lower than the prior-year quarter's $0.21 per share. GAAP EPS of $0.18 for Q4 were 14% lower than the prior-year quarter's $0.21 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 46.9%, 10 basis points better than the prior-year quarter. Operating margin was 23.1%, 40 basis points better than the prior-year quarter. Net margin was 8.2%, 370 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
 Next quarter's average estimate for revenue is $20.7 million. On the bottom line, the average EPS estimate is $0.28.

Next year's average estimate for revenue is $91.9 million. The average EPS estimate is $1.45.

Investor sentiment
 The stock has a five-star rating (out of five) at Motley Fool CAPS, with 41 members out of 44 rating the stock outperform, and three members rating it underperform. Among 21 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 19 give Connecticut Water Service a green thumbs-up, and two give 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 $33.00.

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The article Connecticut Water Service Increases Sales but Misses Revenue Estimate 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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