The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Michael Baker beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue improved significantly, and GAAP earnings per share improved.
Margins grew across the board.
Michael Baker booked revenue of $156.2 million. The two analysts polled by S&P Capital IQ predicted sales of $148.8 million on the same basis. GAAP reported sales were 30% higher than the prior-year quarter's $120.4 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 $0.43. The four earnings estimates compiled by S&P Capital IQ predicted $0.39 per share on the same basis. GAAP EPS were $0.46 for Q4 compared to -$0.18 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 16.8%, 130 basis points better than the prior-year quarter. Operating margin was 1.3%, 190 basis points better than the prior-year quarter. Net margin was 2.8%, 410 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $150.2 million. On the bottom line, the average EPS estimate is $0.46.
Next year's average estimate for revenue is $637.1 million. The average EPS estimate is $2.34.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 143 members rating the stock outperform and eight members rating it underperform. Among 47 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 45 give Michael Baker 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 Michael Baker is outperform, with an average price target of $29.
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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.