Babcock & Wilcox
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Babcock & Wilcox beat expectations on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue improved and GAAP earnings per share grew significantly.
Gross margins shrank, operating margins improved, net margins increased.
Babcock & Wilcox chalked up revenue of $800.8 million. The 12 analysts polled by S&P Capital IQ hoped for a top line of $770.7 million on the same basis. GAAP reported sales were 14% higher than the prior-year quarter's $705.2 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 $0.54. The 10 earnings estimates compiled by S&P Capital IQ predicted $0.41 per share. GAAP EPS of $0.54 for Q4 were 20% higher than the prior-year quarter's $0.45 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 26.3%, 640 basis points worse than the prior-year quarter. Operating margin was 8.4%, 150 basis points better than the prior-year quarter. Net margin was 8.0%, 50 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $759.8 million. On the bottom line, the average EPS estimate is $0.37.
Next year's average estimate for revenue is $3.23 billion. The average EPS estimate is $1.72.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 84 members out of 84 rating the stock outperform. Among 21 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 21 give Babcock & Wilcox a green thumbs-up.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Babcock & Wilcox is outperform, with an average price target of $29.82.
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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.