Team Inc. Increases Sales but Misses Estimates on Earnings

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Team Inc. (NYS: TISI) reported earnings on April 3. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Feb. 29 (Q3), Team beat expectations on revenues and missed estimates on earnings per share.

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


Margins dropped across the board.

Revenue details
Team reported revenue of $136.5 million. The six analysts polled by S&P Capital IQ anticipated a top line of $126.3 million on the same basis. GAAP reported sales were 25% higher than the prior-year quarter's $108.8 million.

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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
EPS came in at $0.10. The six earnings estimates compiled by S&P Capital IQ forecast $0.18 per share. GAAP EPS of $0.10 for Q3 were 47% lower than the prior-year quarter's $0.19 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 26.8%, 140 basis points worse than the prior-year quarter. Operating margin was 2.5%, 40 basis points worse than the prior-year quarter. Net margin was 1.5%, 210 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $178.5 million. On the bottom line, the average EPS estimate is $0.66.

Next year's average estimate for revenue is $614.4 million. The average EPS estimate is $1.62.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 230 members out of 240 rating the stock outperform, and 10 members rating it underperform. Among 53 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 51 give Team a green thumbs-up, and two give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Team is outperform, with an average price target of $36.00.

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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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