The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Dresser-Rand Group missed estimates on revenue and whiffed on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly and GAAP earnings per share grew significantly.
Gross margin increased, operating margin grew, and net margin dropped.
Dresser-Rand Group notched revenue of $738.0 million. The nine analysts polled by S&P Capital IQ expected net sales of $770.1 million on the same basis. GAAP reported sales were 37% higher than the prior-year quarter's $537.2 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 $0.80. The 12 earnings estimates compiled by S&P Capital IQ predicted $0.96 per share on the same basis. GAAP EPS of $0.91 for Q4 were 42% higher than the prior-year quarter's $0.64 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 31.5%, 250 basis points better than the prior-year quarter. Operating margin was 15.3%, 230 basis points better than the prior-year quarter. Net margin was 9.3%, 40 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $583.1 million. On the bottom line, the average EPS estimate is $0.40.
Next year's average estimate for revenue is $2.93 billion. The average EPS estimate is $2.91.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 242 members out of 250 rating the stock outperform, and eight members rating it underperform. Among 80 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), all of them give Dresser-Rand Group a green thumbs-up.
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 $59.20.
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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.