Babcock & Wilcox
The 10-second takeaway
For the quarter ended March 31 (Q1), Babcock & Wilcox met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded and GAAP earnings per share expanded significantly.
Margins increased across the board.
Babcock & Wilcox reported revenue of $765.9 million. The 11 analysts polled by S&P Capital IQ hoped for revenue of $769.7 million on the same basis. GAAP reported sales were 11% higher than the prior-year quarter's $691.3 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 $0.39. The eight earnings estimates compiled by S&P Capital IQ anticipated $0.38 per share. GAAP EPS of $0.39 for Q1 were 255% higher than the prior-year quarter's $0.11 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 23.9%, 560 basis points better than the prior-year quarter. Operating margin was 6.3%, 540 basis points better than the prior-year quarter. Net margin was 6.1%, 410 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $809.2 million. On the bottom line, the average EPS estimate is $0.42.
Next year's average estimate for revenue is $3.28 billion. The average EPS estimate is $1.73.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 82 members out of 82 rating the stock outperform, and members rating it underperform. Among 16 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 16 give Babcock & Wilcox a green thumbs-up, and none give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Babcock & Wilcox is outperform, with an average price target of $32.32.
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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.