Team Inc. Beats Estimates on Top and Bottom Lines

Team (NYSE: TISI  ) reported earnings on Jan. 3. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Nov. 30 (Q2), Team beat expectations on revenues and beat expectations on earnings per share.

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

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

Revenue details
Team chalked up revenue of $158 million. The six analysts polled by S&P Capital IQ hoped for revenue of $154 million. Sales were 19% higher than the prior-year quarter's $133 million

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

EPS details
Non-GAAP EPS came in at $0.53. The six earnings estimates compiled by S&P Capital IQ predicted $0.49 per share on the same basis. GAAP EPS of $0.50 for Q2 were 23% higher than the prior-year quarter's $0.41 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 31.9%, 100 basis points worse than the prior-year quarter. Operating margin was 11.0%, 40 basis points better than the prior-year quarter. Net margin was 6.5%, 40 basis points better than the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods.

Looking ahead
What does the future hold?

Next quarter's average estimate for revenue is $126 million. On the bottom line, the average EPS estimate is $0.17.

Next year's average estimate for revenue is $603 million. The average EPS estimate is $1.68.

Investor Sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 235 members out of 245 rating the stock outperform, and 10 members rating it underperform. Among 54 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 52 give Team 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 Team is outperform, with an average price target of $31.00.

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 of Motley 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.

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