Dresser-Rand Group Earnings: Here’s Why Investors are Selling Shares Now

Dresser-Rand Group Inc. (NYSE:DRC) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 1.76%.

Dresser-Rand Group Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 53.33% to $0.69 in the quarter versus EPS of $0.45 in the year-earlier quarter.

Revenue: Rose 26.66% to $805.3 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Dresser-Rand Group Inc. reported adjusted EPS income of $0.69 per share. By that measure, the company beat the mean analyst estimate of $0.57. It missed the average revenue estimate of $836.76 million.

Quoting Management: Vincent R. Volpe Jr., President and Chief Executive Officer of Dresser-Rand, said, “We are pleased with our second quarter 2013 bookings and financial results. Income from operations of $87 million was up 20% from last year’s second quarter and was close to the top end of our guidance range. For the full year, we continue to forecast revenues and operating income at record levels.”

Key Stats (on next page)…

Revenue increased 5.08% from $766.4 million in the previous quarter. EPS increased 60.47% from $0.43 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.91 to a profit $0.93. For the current year, the average estimate has moved down from a profit of $3.34 to a profit of $3.30 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)