KBR Whiffs on Revenues

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KBR (NYS: KBR) reported earnings on Feb. 22. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), KBR whiffed on revenues and missed estimates on earnings per share.

Compared to the prior-year quarter, revenue dropped and GAAP earnings per share expanded significantly.

Margins grew across the board.

Revenue details
KBR logged revenue of $2.10 billion. The 12 analysts polled by S&P Capital IQ looked for sales of $2.44 billion on the same basis. GAAP reported sales were 9.7% lower than the prior-year quarter's $2.44 billion.

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

EPS details
Non-GAAP EPS came in at $0.60. The 15 earnings estimates compiled by S&P Capital IQ forecast $0.64 per share on the same basis. GAAP EPS of $0.61 for Q4 were 20% higher than the prior-year quarter's $0.51 per share.

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

Margin details
For the quarter, gross margin was 13.3%, 80 basis points better than the prior-year quarter. Operating margin was 11.0%, 80 basis points better than the prior-year quarter. Net margin was 4.1%, 90 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $2.31 billion. On the bottom line, the average EPS estimate is $0.61.

Next year's average estimate for revenue is $9.44 billion. The average EPS estimate is $2.64.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 562 members out of 593 rating the stock outperform, and 31 members rating it underperform. Among 204 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 196 give KBR a green thumbs-up, and eight give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on KBR is outperform, with an average price target of $42.42.

At the time this article was published 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 ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. 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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