The 10-second takeaway
For the quarter ended Aug. 31 (Q4), Shaw Group met expectations on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped slightly and GAAP earnings per share expanded.
Margins expanded across the board.
Shaw Group reported revenue of $1.46 billion. The 10 analysts polled by S&P Capital IQ wanted to see a top line of $1.46 billion on the same basis. GAAP reported sales were 1.6% lower than the prior-year quarter's $1.48 billion.
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 $1.86. The eight earnings estimates compiled by S&P Capital IQ anticipated $1.36 per share. GAAP EPS were $1.68 for Q4 compared to -$1.25 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 9.8%, 940 basis points better than the prior-year quarter. Operating margin was 3.9%, 750 basis points better than the prior-year quarter. Net margin was 7.8%, 1,390 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $1.39 billion. On the bottom line, the average EPS estimate is $0.42.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 540 members out of 577 rating the stock outperform, and 37 members rating it underperform. Among 117 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 105 give Shaw Group a green thumbs-up, and 12 give it a red thumbs-down.
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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. The Motley Fool has no positions in the stocks mentioned above. 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.