The 10-second takeaway
For the quarter ended March 31 (Q1), KBR missed estimates on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank. GAAP earnings per share shrank.
Margins grew across the board.
KBR reported revenue of $1.86 billion. The 12 analysts polled by S&P Capital IQ expected revenue of $1.90 billion on the same basis. GAAP reported sales were 5.3% lower than the prior-year quarter's $1.96 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 $0.59. The 13 earnings estimates compiled by S&P Capital IQ predicted $0.47 per share. GAAP EPS of $0.59 for Q1 were 3.3% lower than the prior-year quarter's $0.61 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 10.8%, 440 basis points better than the prior-year quarter. Operating margin was 7.2%, 360 basis points better than the prior-year quarter. Net margin was 4.7%, 10 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $1.97 billion. On the bottom line, the average EPS estimate is $0.56.
Next year's average estimate for revenue is $7.68 billion. The average EPS estimate is $2.63.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 551 members out of 581 rating the stock outperform, and 30 members rating it underperform. Among 160 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 153 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 $38.09.
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