WGL Holdings Beats on EPS but GAAP Results Lag

WGL Holdings (NYSE: WGL  ) reported earnings on Feb. 3. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q1), WGL Holdings whiffed on revenues and beat expectations on earnings per share.

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

Margins contracted across the board.

Revenue details
WGL Holdings recorded revenue of $727.8 million. The four analysts polled by S&P Capital IQ hoped for revenue of $889.4 million. Sales were 8.6% lower than the prior-year quarter's $795.9 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.

EPS details
Non-GAAP EPS came in at $1.13. The seven earnings estimates compiled by S&P Capital IQ predicted $1.11 per share on the same basis. GAAP EPS of $0.98 for Q1 were 23% lower than the prior-year quarter's $1.28 per share.

Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 21.3%, 140 basis points worse than the prior-year quarter. Operating margin was 12.9%, 190 basis points worse than the prior-year quarter. Net margin was 6.9%, 130 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $1.05 billion. On the bottom line, the average EPS estimate is $1.67.

Next year's average estimate for revenue is $2.89 billion. The average EPS estimate is $2.50.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 70 members out of 73 rating the stock outperform, and three members rating it underperform. Among 31 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 31 give WGL Holdings a green thumbs-up.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on WGL Holdings is hold, with an average price target of $40.38.

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