The 10-second takeaway
For the quarter ended Dec. 31 (Q4), KBR whiffed on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped. Non-GAAP earnings per share shrank significantly. GAAP earnings per share contracted significantly.
Gross margins grew, operating margins increased, net margins shrank.
KBR reported revenue of $1.87 billion. The 11 analysts polled by S&P Capital IQ wanted to see a top line of $2.10 billion on the same basis. GAAP reported sales were the same as the prior-year quarter's.
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 $0.20. The 10 earnings estimates compiled by S&P Capital IQ predicted $0.02 per share. Non-GAAP EPS of $0.20 for Q4 were 67% lower than the prior-year quarter's $0.60 per share. GAAP EPS of $0.21 for Q4 were 65% lower than the prior-year quarter's $0.60 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 10.7%, 410 basis points better than the prior-year quarter. Operating margin was 7.7%, 350 basis points better than the prior-year quarter. Net margin was 1.5%, 290 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $1.98 billion. On the bottom line, the average EPS estimate is $0.49.
Next year's average estimate for revenue is $8.36 billion. The average EPS estimate is $2.61.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 554 members out of 584 rating the stock outperform, and 30 members rating it underperform. Among 167 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 160 give KBR a green thumbs-up, and seven give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on KBR is outperform, with an average price target of $40.42.
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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. TMFDisclosureHere
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