The Gory Details on Dresser-Rand Group's Double Fumble
Aug 10th 2012 9:33AM
Updated Aug 10th 2012 9:34AM
Dresser-Rand Group (NYS: DRC) reported earnings on Aug. 2. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended June 30 (Q2), Dresser-Rand Group missed estimates on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue expanded and GAAP earnings per share expanded significantly.
Margins expanded across the board.
Dresser-Rand Group logged revenue of $635.8 million. The eight analysts polled by S&P Capital IQ foresaw sales of $701.0 million on the same basis. GAAP reported sales were 8.0% higher than the prior-year quarter's $588.9 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 $0.45. The 11 earnings estimates compiled by S&P Capital IQ forecast $0.50 per share. GAAP EPS of $0.45 for Q2 were 221% higher than the prior-year quarter's $0.14 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 26.4%, 170 basis points better than the prior-year quarter. Operating margin was 11.4%, 360 basis points better than the prior-year quarter. Net margin was 5.3%, 350 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $660.0 million. On the bottom line, the average EPS estimate is $0.76.
Next year's average estimate for revenue is $2.93 billion. The average EPS estimate is $2.73.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 244 members out of 252 rating the stock outperform, and eight members rating it underperform. Among 68 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 68 give Dresser-Rand Group 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 Dresser-Rand Group is outperform, with an average price target of $62.40.
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The article The Gory Details on Dresser-Rand Group's Double Fumble originally appeared on Fool.com.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. The Motley Fool has no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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