Babcock & Wilcox
The 10-second takeaway
For the quarter ended March 31 (Q1), Babcock & Wilcox missed estimates on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue increased. Non-GAAP earnings per share expanded significantly. GAAP earnings per share increased.
Gross margins dropped, operating margins grew, net margins contracted.
Babcock & Wilcox reported revenue of $805.4 million. The 11 analysts polled by S&P Capital IQ predicted revenue of $826.6 million on the same basis. GAAP reported sales were 5.2% higher than the prior-year quarter's $765.9 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 $0.46. The nine earnings estimates compiled by S&P Capital IQ predicted $0.48 per share. Non-GAAP EPS of $0.46 for Q1 were 18% higher than the prior-year quarter's $0.39 per share. GAAP EPS of $0.41 for Q1 were 5.1% higher than the prior-year quarter's $0.39 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 23.1%, 80 basis points worse than the prior-year quarter. Operating margin was 6.7%, 40 basis points better than the prior-year quarter. Net margin was 5.9%, 20 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $871.3 million. On the bottom line, the average EPS estimate is $0.63.
Next year's average estimate for revenue is $3.46 billion. The average EPS estimate is $2.31.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 83 members out of 86 rating the stock outperform, and three members rating it underperform. Among 17 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 17 give Babcock & Wilcox a green thumbs-up, and give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Babcock & Wilcox is outperform, with an average price target of $32.25.
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