Babcock & Wilcox Beats Up on Analysts Yet Again
Babcock & Wilcox (NYS: BWC) reported earnings on Feb. 29. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Babcock & Wilcox beat expectations on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue improved and GAAP earnings per share grew significantly.
Gross margins shrank, operating margins improved, net margins increased.
Babcock & Wilcox chalked up revenue of $800.8 million. The 12 analysts polled by S&P Capital IQ hoped for a top line of $770.7 million on the same basis. GAAP reported sales were 14% higher than the prior-year quarter's $705.2 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 $0.54. The 10 earnings estimates compiled by S&P Capital IQ predicted $0.41 per share. GAAP EPS of $0.54 for Q4 were 20% higher than the prior-year quarter's $0.45 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 26.3%, 640 basis points worse than the prior-year quarter. Operating margin was 8.4%, 150 basis points better than the prior-year quarter. Net margin was 8.0%, 50 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $759.8 million. On the bottom line, the average EPS estimate is $0.37.
Next year's average estimate for revenue is $3.23 billion. The average EPS estimate is $1.72.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 84 members out of 84 rating the stock outperform. Among 21 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 21 give Babcock & Wilcox a green thumbs-up.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Babcock & Wilcox is outperform, with an average price target of $29.82.
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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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