The 10-second takeaway
For the quarter ended April 30 (Q1), Layne Christensen beat slightly on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue increased and GAAP earnings per share dropped significantly.
Margins contracted across the board.
Layne Christensen reported revenue of $276.5 million. The three analysts polled by S&P Capital IQ expected revenue of $271.3 million on the same basis. GAAP reported sales were 3.4% higher than the prior-year quarter's $267.4 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.19. The four earnings estimates compiled by S&P Capital IQ predicted $0.19 per share. GAAP EPS of $0.19 for Q1 were 71% lower than the prior-year quarter's $0.66 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 19.8%, 530 basis points worse than the prior-year quarter. Operating margin was -0.5%, 500 basis points worse than the prior-year quarter. Net margin was 1.4%, 350 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $298.4 million. On the bottom line, the average EPS estimate is $0.39.
Next year's average estimate for revenue is $1.17 billion. The average EPS estimate is $1.44.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 344 members out of 357 rating the stock outperform, and 13 members rating it underperform. Among 87 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 85 give Layne Christensen 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 Layne Christensen is hold, with an average price target of $27.00.
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