The 10-second takeaway
For the quarter ended March 31 (Q1), Aegion beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue was unchanged. GAAP earnings per share dropped significantly.
Margins contracted across the board.
Aegion logged revenue of $231.7 million. The seven analysts polled by S&P Capital IQ wanted to see sales of $225.3 million on the same basis. GAAP reported sales were the same as the prior-year quarter's.
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 $0.07. The six earnings estimates compiled by S&P Capital IQ averaged $0.06 per share. GAAP EPS of $0.07 for Q1 were 59% lower than the prior-year quarter's $0.17 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 20.3%, 250 basis points worse than the prior-year quarter. Operating margin was 2.3%, 270 basis points worse than the prior-year quarter. Net margin was 1.2%, 170 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $282.3 million. On the bottom line, the average EPS estimate is $0.47.
Next year's average estimate for revenue is $1.10 billion. The average EPS estimate is $1.62.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 175 members out of 187 rating the stock outperform, and 12 members rating it underperform. Among 45 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 42 give Aegion a green thumbs-up, and three give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Aegion is outperform, with an average price target of $25.71.
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