Questar Earnings: Here’s Why the Stock is Up Now

Questar Corporation (NYSE:STR) delivered a profit and met Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are up 0.17%.

Questar Corporation Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 0% to $0.22 in the quarter versus EPS of $0.22 in the year-earlier quarter.

Revenue: Rose 3.82% to $195.6 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Questar Corporation reported adjusted EPS income of $0.22 per share. By that measure, the company missed the mean analyst estimate of $0.22. It missed the average revenue estimate of $239.44 million.

Quoting Management: “I am pleased to report that Questar’s performance for the quarter was on pace with last year’s second quarter performance and in line with our 2013 earnings guidance,” said Ronald W. Jibson, Questar chairman, president and CEO. “Questar Gas posted a small seasonal net loss, typical for the second quarter and slightly lower than last year’s loss for the period. Wexpro posted a 10% increase in net income while Questar Pipeline’s income was down 10% compared to the second quarter of 2012. Adjusted EBITDA in the second quarter of 2013 was about $123 million, up 1% from the same quarter in 2012.”

Key Stats (on next page)…

Revenue decreased 0% from $0 in the previous quarter. EPS decreased 46.34% from $0.41 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.17 and has not changed. For the current year, the average estimate is a profit of $1.18, which is the same with that ninety days ago.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)