The Gory Details of Dresser-Rand Group's Earnings Miss
Dresser-Rand Group (NYS: DRC) reported earnings on Feb. 29. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Dresser-Rand Group missed estimates on revenue and whiffed on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly and GAAP earnings per share grew significantly.
Gross margin increased, operating margin grew, and net margin dropped.
Dresser-Rand Group notched revenue of $738.0 million. The nine analysts polled by S&P Capital IQ expected net sales of $770.1 million on the same basis. GAAP reported sales were 37% higher than the prior-year quarter's $537.2 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.80. The 12 earnings estimates compiled by S&P Capital IQ predicted $0.96 per share on the same basis. GAAP EPS of $0.91 for Q4 were 42% higher than the prior-year quarter's $0.64 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 31.5%, 250 basis points better than the prior-year quarter. Operating margin was 15.3%, 230 basis points better than the prior-year quarter. Net margin was 9.3%, 40 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $583.1 million. On the bottom line, the average EPS estimate is $0.40.
Next year's average estimate for revenue is $2.93 billion. The average EPS estimate is $2.91.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 242 members out of 250 rating the stock outperform, and eight members rating it underperform. Among 80 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), all of them give Dresser-Rand Group a green thumbs-up.
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 $59.20.
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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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