The 10-second takeaway
For the quarter ended Nov. 30 (Q1), Shaw Group met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped slightly, and earnings per share rose significantly.
Margins improved across the board.
Shaw Group recorded revenue of $1.52 billion. The 14 analysts polled by S&P Capital IQ predicted sales of $1.5 billion. Sales were 1.7% lower than the prior-year quarter's $1.54 billion
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $0.48. The 15 earnings estimates compiled by S&P Capital IQ predicted $0.44 per share on the same basis. GAAP EPS were $0.68 for Q1 against -$0.19 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 7.9%, 390 basis points better than the prior-year quarter. Operating margin was 3.3%, 390 basis points better than the prior-year quarter. Net margin was 3.2%, 420 basis points better than the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods.
What does the future hold?
Next quarter's average estimate for revenue is $1.4 billion. On the bottom line, the average EPS estimate is $0.45.
Next year's average estimate for revenue is $6.0 billion. The average EPS estimate is $2.05.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 555 members out of 592 rating the stock outperform, and 37 members rating it underperform. Among 122 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 110 give Shaw Group a green thumbs-up, and 12 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Shaw Group is hold, with an average price target of $27.93.
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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. He is the 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 don't 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.