Compagnie Générale de Géophysique-Veritas Increases Sales but Misses Estimates on Earnings

Compagnie Générale de Géophysique-Veritas (NYSE: CGV  ) reported earnings on Nov. 5. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Compagnie Générale de Géophysique-Veritas missed estimates on revenues and missed estimates on earnings per share.

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

Margins grew across the board.

Revenue details
Compagnie Générale de Géophysique-Veritas logged revenue of $855.0 million. The five analysts polled by S&P Capital IQ hoped for revenue of $915.1 million on the same basis. GAAP reported sales were 15% higher than the prior-year quarter's $745.1 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 $0.29. The one earnings estimate compiled by S&P Capital IQ anticipated $0.66 per share. GAAP EPS of $0.29 for Q3 were 21% higher than the prior-year quarter's $0.24 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 22.8%, 290 basis points better than the prior-year quarter. Operating margin was 13.4%, 340 basis points better than the prior-year quarter. Net margin was 5.2%, 30 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $1.10 billion. On the bottom line, the average EPS estimate is $0.87.

Next year's average estimate for revenue is $3.60 billion. The average EPS estimate is $1.37.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 493 members out of 509 rating the stock outperform, and 16 members rating it underperform. Among 153 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 152 give Compagnie Générale de Géophysique-Veritas a green thumbs-up, and one give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Compagnie Générale de Géophysique-Veritas is outperform, with an average price target of $32.14.

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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. TMFDisclosureHere


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