The 10-second takeaway
For the quarter ended Dec. 31 (Q4), KBR whiffed on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue dropped and GAAP earnings per share expanded significantly.
Margins grew across the board.
KBR logged revenue of $2.10 billion. The 12 analysts polled by S&P Capital IQ looked for sales of $2.44 billion on the same basis. GAAP reported sales were 9.7% lower than the prior-year quarter's $2.44 billion.
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 $0.60. The 15 earnings estimates compiled by S&P Capital IQ forecast $0.64 per share on the same basis. GAAP EPS of $0.61 for Q4 were 20% higher than the prior-year quarter's $0.51 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 13.3%, 80 basis points better than the prior-year quarter. Operating margin was 11.0%, 80 basis points better than the prior-year quarter. Net margin was 4.1%, 90 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $2.31 billion. On the bottom line, the average EPS estimate is $0.61.
Next year's average estimate for revenue is $9.44 billion. The average EPS estimate is $2.64.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 562 members out of 593 rating the stock outperform, and 31 members rating it underperform. Among 204 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 196 give KBR a green thumbs-up, and eight give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on KBR is outperform, with an average price target of $42.42.
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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.