The Gory Details on Babcock & Wilcox's Double Fumble
Nov 9th 2012 9:04AM
Updated Nov 9th 2012 9:08AM
Babcock & Wilcox (NYS: BWC) reported earnings on Nov. 7. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Babcock & Wilcox missed estimates on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue expanded and GAAP earnings per share contracted.
Gross margins contracted, operating margins increased, net margins shrank.
Babcock & Wilcox reported revenue of $807.6 million. The 12 analysts polled by S&P Capital IQ expected to see a top line of $826.9 million on the same basis. GAAP reported sales were 14% higher than the prior-year quarter's $707.6 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 $0.37. The nine earnings estimates compiled by S&P Capital IQ forecast $0.44 per share. GAAP EPS of $0.34 for Q3 were 13% lower 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 23.3%, 100 basis points worse than the prior-year quarter. Operating margin was 6.9%, 190 basis points better than the prior-year quarter. Net margin was 5.0%, 150 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $864.4 million. On the bottom line, the average EPS estimate is $0.47.
Next year's average estimate for revenue is $3.31 billion. The average EPS estimate is $1.78.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 89 members out of 91 rating the stock outperform, and two members rating it underperform. Among 20 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 20 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 $32.71.
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The article The Gory Details on Babcock & Wilcox'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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