The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Aegion missed estimates on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue improved and GAAP earnings per share dropped significantly.
Gross margins expanded, operating margins dropped, net margins shrank.
Aegion logged revenue of $256.8 million. The 10 analysts polled by S&P Capital IQ predicted a top line of $265.2 million on the same basis. GAAP reported sales were 4.4% higher than the prior-year quarter's $246.0 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.38. The 10 earnings estimates compiled by S&P Capital IQ predicted $0.37 per share on the same basis. GAAP EPS of $0.37 for Q4 were 16% lower than the prior-year quarter's $0.44 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 24.7%, 20 basis points better than the prior-year quarter. Operating margin was 8.7%, 140 basis points worse than the prior-year quarter. Net margin was 5.7%, 140 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $241.8 million. On the bottom line, the average EPS estimate is $0.24.
Next year's average estimate for revenue is $1.06 billion. The average EPS estimate is $1.49.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 183 members out of 194 rating the stock outperform, and 11 members rating it underperform. Among 57 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 55 give Aegion 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 Aegion is outperform, with an average price target of $18.61.
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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. Try any of our Foolish newsletter services free for 30 days. We Fools may not 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.