The 10-second takeaway
For the quarter ended March 31 (Q1), Stantec beat expectations on revenue and missed estimates on earnings per share.
Compared to the prior-year quarter, both revenue and GAAP earnings per share grew.
Margins shrank across the board.
Stantec booked revenue of $371.6 million. The seven analysts polled by S&P Capital IQ wanted to see sales of $363.2 million on the same basis. GAAP-reported sales were 7.2% higher than the prior-year quarter's $346.7 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 $0.55. The 10 earnings estimates compiled by S&P Capital IQ anticipated $0.56 per share. GAAP EPS of $0.55 for Q1 were 1.9% higher than the prior-year quarter's $0.54 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 54.4%, 140 basis points worse than the prior-year quarter. Operating margin was 9.9%, 40 basis points worse than the prior-year quarter. Net margin was 6.7%, 40 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $370.1 million. On the bottom line, the average EPS estimate is $0.61.
Next year's average estimate for revenue is $1.51 billion. The average EPS estimate is $2.45.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 74 members rating the stock outperform and six members rating it underperform. Among 15 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), all 15 give Stantec a green thumbs-up.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Stantec is outperform, with an average price target of $32.65.
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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.