The 10-second takeaway
For the quarter ended Feb. 29 (Q3), Team beat expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue improved significantly and GAAP earnings per share dropped significantly.
Margins dropped across the board.
Team reported revenue of $136.5 million. The six analysts polled by S&P Capital IQ anticipated a top line of $126.3 million on the same basis. GAAP reported sales were 25% higher than the prior-year quarter's $108.8 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 $0.10. The six earnings estimates compiled by S&P Capital IQ forecast $0.18 per share. GAAP EPS of $0.10 for Q3 were 47% lower than the prior-year quarter's $0.19 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 26.8%, 140 basis points worse than the prior-year quarter. Operating margin was 2.5%, 40 basis points worse than the prior-year quarter. Net margin was 1.5%, 210 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $178.5 million. On the bottom line, the average EPS estimate is $0.66.
Next year's average estimate for revenue is $614.4 million. The average EPS estimate is $1.62.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 230 members out of 240 rating the stock outperform, and 10 members rating it underperform. Among 53 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 51 give Team 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 Team is outperform, with an average price target of $36.00.
Over the decades, small-cap stocks, like Team 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 Team 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.
More from The Motley Fool
Why Team, Inc. Stock Just Crashed 28.5%
Poor preliminary results are just part of the answer.
This Week's 5 Dumbest Stock Moves
These five stocks got it wrong this week.
An Early Look at Team Earnings
The industrial-services company has rebounded from a spring hit to its stock, but will Team earnings help send its shares even higher?