The 10-second takeaway
For the quarter ended March 31 (Q1), Aegion beat slightly on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue improved and GAAP earnings per share expanded significantly.
Margins expanded across the board.
Aegion chalked up revenue of $230.6 million. The nine analysts polled by S&P Capital IQ predicted revenue of $227.0 million on the same basis. GAAP reported sales were 9.5% higher than the prior-year quarter's $210.6 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 $0.18. The nine earnings estimates compiled by S&P Capital IQ anticipated $0.19 per share on the same basis. GAAP EPS of $0.17 for Q1 were 113% higher than the prior-year quarter's $0.08 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 22.8%, 320 basis points better than the prior-year quarter. Operating margin was 5.0%, 240 basis points better than the prior-year quarter. Net margin was 2.9%, 150 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $255.0 million. On the bottom line, the average EPS estimate is $0.34.
Next year's average estimate for revenue is $1.06 billion. The average EPS estimate is $1.49.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 184 members out of 196 rating the stock outperform, and 12 members rating it underperform. Among 52 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 49 give Aegion 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 Aegion is outperform, with an average price target of $20.89.
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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.