It's Showtime for Dresser-Rand Group

By Seth Jayson – Updated Apr 10, 2017 at 12:41PM

Checking expectations

Dresser-Rand Group (NYSE: DRC) is expected to report Q2 earnings on July 26. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Dresser-Rand Group's revenues will grow 31.4% and EPS will expand 26.7%.

The average estimate for revenue is $835.3 million. On the bottom line, the average EPS estimate is $0.57.

Revenue details
Last quarter, Dresser-Rand Group chalked up revenue of $766.4 million. GAAP reported sales were 16% higher than the prior-year quarter's $661.8 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, EPS came in at $0.43. GAAP EPS of $0.43 for Q1 were 39% higher than the prior-year quarter's $0.31 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 22.4%, 50 basis points better than the prior-year quarter. Operating margin was 8.5%, 70 basis points better than the prior-year quarter. Net margin was 4.3%, 70 basis points better than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $3.53 billion. The average EPS estimate is $3.30.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 245 members out of 255 rating the stock outperform, and 10 members rating it underperform. Among 77 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 76 give Dresser-Rand Group a green thumbs-up, and one give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Dresser-Rand Group is outperform, with an average price target of $68.08.

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About the Author

Seth Jayson (TMFBent) began his Foolish career as a writer before recommending stocks in special products and then taking on the co-advisor role at our small-cap service, Hidden Gems, where he became the longest-serving HG advisor. After that, Seth specialized in beating the market with lesser-known, smaller companies at Market Pass before transitioning into the lead advisor role for Artificial Intelligence and Trend-Spotter. His work at TMF has also included some time building databases and "robots" that wrote thousands of articles on their own, along with other robots that uploaded these articles into our publishing system. Although these were too simple to qualify as AI (except maybe by 1950s terms), he likes to think that keeping a toe in the nitty-gritty of the tech gives him some valuable perspective that can help inform investing decisions. Originally from the frozen Iron Range of northern Minnesota, Seth graduated from Carleton College and holds master's degrees from NYU and the University of Missouri. When he's not riding bikes or hiking with the family, he's probably out running, or making carbon fiber bikes in the garage.

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