Dresser-Rand Group Beats on the Top Line

Seth Jayson, The Motley Fool
Updated

Dresser-Rand Group (NYS: DRC) reported earnings on May 3. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), Dresser-Rand Group crushed expectations on revenues and beat expectations on earnings per share.

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


Gross margins dropped, operating margins expanded, net margins improved.

Revenue details
Dresser-Rand Group recorded revenue of $661.8 million. The seven analysts polled by S&P Capital IQ expected to see revenue of $494.1 million on the same basis. GAAP reported sales were 87% higher than the prior-year quarter's $354.2 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 $0.31. The 10 earnings estimates compiled by S&P Capital IQ forecast $0.24 per share. GAAP EPS of $0.31 for Q1 were much higher than the prior-year quarter's $0.00 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 21.9%, 650 basis points worse than the prior-year quarter. Operating margin was 7.8%, 100 basis points better than the prior-year quarter. Net margin was 3.6%, 350 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $719.5 million. On the bottom line, the average EPS estimate is $0.66.

Next year's average estimate for revenue is $2.93 billion. The average EPS estimate is $2.82.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 243 members out of 251 rating the stock outperform, and eight members rating it underperform. Among 70 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 70 give Dresser-Rand Group 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 Dresser-Rand Group is outperform, with an average price target of $60.67.

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At the time thisarticle was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings. He is the 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 don't 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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