The 10-second takeaway
For the quarter ended June 30 (Q2), Dresser-Rand Group missed estimates on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue expanded and GAAP earnings per share expanded significantly.
Margins expanded across the board.
Dresser-Rand Group logged revenue of $635.8 million. The eight analysts polled by S&P Capital IQ foresaw sales of $701.0 million on the same basis. GAAP reported sales were 8.0% higher than the prior-year quarter's $588.9 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 $0.45. The 11 earnings estimates compiled by S&P Capital IQ forecast $0.50 per share. GAAP EPS of $0.45 for Q2 were 221% higher than the prior-year quarter's $0.14 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 26.4%, 170 basis points better than the prior-year quarter. Operating margin was 11.4%, 360 basis points better than the prior-year quarter. Net margin was 5.3%, 350 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $660.0 million. On the bottom line, the average EPS estimate is $0.76.
Next year's average estimate for revenue is $2.93 billion. The average EPS estimate is $2.73.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 244 members out of 252 rating the stock outperform, and eight members rating it underperform. Among 68 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 68 give Dresser-Rand Group a green thumbs-up, and give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Dresser-Rand Group is outperform, with an average price target of $62.40.
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