The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Aegion missed estimates on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share grew significantly.
Margins grew across the board.
Aegion reported revenue of $265.2 million. The eight analysts polled by S&P Capital IQ looked for revenue of $286.9 million on the same basis. GAAP reported sales were 7.7% higher than the prior-year quarter's $246.2 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 $0.50. The eight earnings estimates compiled by S&P Capital IQ forecast $0.47 per share. GAAP EPS of $0.49 for Q3 were much higher than the prior-year quarter's $0.03 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 23.7%, 230 basis points better than the prior-year quarter. Operating margin was 7.5%, 130 basis points better than the prior-year quarter. Net margin was 7.4%, 690 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $292.1 million. On the bottom line, the average EPS estimate is $0.48.
Next year's average estimate for revenue is $1.07 billion. The average EPS estimate is $1.46.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 177 members out of 189 rating the stock outperform, and 12 members rating it underperform. Among 51 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 48 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 buy, with an average price target of $23.13.
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