The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Tutor Perini missed estimates on revenues and whiffed on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly and GAAP earnings per share increased significantly.
Gross margins grew, operating margins contracted, net margins dropped.
Tutor Perini notched revenue of $1.11 billion. The three analysts polled by S&P Capital IQ expected a top line of $1.17 billion on the same basis. GAAP reported sales were 62% higher than the prior-year quarter's $688.0 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 $0.50. The three earnings estimates compiled by S&P Capital IQ predicted $0.75 per share. GAAP EPS of $0.50 for Q4 were 25% higher than the prior-year quarter's $0.40 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 11.2%, 70 basis points better than the prior-year quarter. Operating margin was 4.6%, 10 basis points worse than the prior-year quarter. Net margin was 2.2%, 50 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $1.07 billion. On the bottom line, the average EPS estimate is $0.41.
Next year's average estimate for revenue is $4.53 billion. The average EPS estimate is $2.25.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 589 members out of 610 rating the stock outperform, and 22 members rating it underperform. Among 172 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 169 give Tutor Perini a green thumbs-up, and three give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Tutor Perini is outperform, with an average price target of $24.67.
Over the decades, small-cap stocks, like Tutor Perini have provided market-beating returns, provided they're value priced and have solid businesses. Read about a pair of companies with a lock on their markets in "Too Small to Fail: Two Small Caps the Government Won't Let Go Broke." Click here for instant access to this free report.
- Add Tutor Perini to My Watchlist.
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.