The 10-second takeaway
For the quarter ended Feb. 29 (Q2), Shaw Group beat slightly on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue improved, and GAAP earnings per share improved significantly.
Gross margins dropped, operating margins improved, and net margins expanded.
Shaw Group reported revenue of $1.47 billion. The 13 analysts polled by S&P Capital IQ expected net sales of $1.45 billion on the same basis. GAAP reported sales were 3.5% higher than the prior-year quarter's $1.42 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 $0.46. The 15 earnings estimates compiled by S&P Capital IQ predicted $0.46 per share on the same basis. GAAP EPS of $0.78 for Q2 were much higher than the prior-year quarter's $0.01 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 7.4%, 70 basis points worse than the prior-year quarter. Operating margin was 3.2%, 20 basis points better than the prior-year quarter. Net margin was 3.6%, 350 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $1.52 billion. On the bottom line, the average EPS estimate is $0.59.
Next year's average estimate for revenue is $5.99 billion. The average EPS estimate is $2.10.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 552 members rating the stock outperform and 37 members rating it underperform. Among 122 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 110 give Shaw Group a green thumbs-up, and 12 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Shaw Group is hold, with an average price target of $31.14.
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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.