KBR Beats Expectations But Takes A Step Back Anyway

KBR (NYS: KBR) reported earnings on Feb. 20. Here are the numbers you need to know.

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

Compared to the prior-year quarter, revenue dropped. Non-GAAP earnings per share shrank significantly. GAAP earnings per share contracted significantly.

Gross margins grew, operating margins increased, net margins shrank.

Revenue details
KBR reported revenue of $1.87 billion. The 11 analysts polled by S&P Capital IQ wanted to see a top line of $2.10 billion on the same basis. GAAP reported sales were the same as the prior-year quarter's.

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 $0.20. The 10 earnings estimates compiled by S&P Capital IQ predicted $0.02 per share. Non-GAAP EPS of $0.20 for Q4 were 67% lower than the prior-year quarter's $0.60 per share. GAAP EPS of $0.21 for Q4 were 65% lower than the prior-year quarter's $0.60 per share.

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 10.7%, 410 basis points better than the prior-year quarter. Operating margin was 7.7%, 350 basis points better than the prior-year quarter. Net margin was 1.5%, 290 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $1.98 billion. On the bottom line, the average EPS estimate is $0.49.

Next year's average estimate for revenue is $8.36 billion. The average EPS estimate is $2.61.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 554 members out of 584 rating the stock outperform, and 30 members rating it underperform. Among 167 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 160 give KBR a green thumbs-up, and seven 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 $40.42.

If you're interested in companies like KBR, you might want to check out the jaw-dropping technology that's about to put 100 million Chinese factory workers out on the street - and the 3 companies that control it. We'll tell you all about them in "The Future is Made in America." Click here for instant access to this free report.

• Add KBR to My Watchlist.

The article KBR Beats Expectations But Takes A Step Back Anyway originally appeared on Fool.com.

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. TMFDisclosureHere

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.