The 10-second takeaway
For the quarter ended June 30 (Q2), Aegion missed estimates on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank. Non-GAAP earnings per share increased significantly. GAAP earnings per share increased significantly.
Gross margins were steady, operating margins contracted, net margins increased.
Aegion reported revenue of $242.1 million. The eight analysts polled by S&P Capital IQ expected to see sales of $267.1 million on the same basis. GAAP reported sales were 6.0% lower than the prior-year quarter's $257.5 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
EPS came in at $0.49. The eight earnings estimates compiled by S&P Capital IQ forecast $0.38 per share. Non-GAAP EPS of $0.49 for Q2 were 53% higher than the prior-year quarter's $0.32 per share. GAAP EPS of $0.34 for Q2 were 17% higher than the prior-year quarter's $0.29 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
For the quarter, gross margin was 24.2%, much about the same as the prior-year quarter. Operating margin was 7.3%, 40 basis points worse than the prior-year quarter. Net margin was 5.5%, 100 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $333.4 million. On the bottom line, the average EPS estimate is $0.61.
Next year's average estimate for revenue is $1.16 billion. The average EPS estimate is $1.62.
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 50 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 46 give Aegion a green thumbs-up, and four give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Aegion is outperform, with an average price target of $26.00.
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