Edgen Group Earnings: Everything You Must Know Now

Edgen Group (NYSE:EDG) had a loss and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company.

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Edgen Group Earnings Cheat Sheet

Revenue: Rose 46.25% to $406.1 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Edgen Group reported adjusted EPS loss of $0.16 per share. By that measure, the company missed the mean analyst estimate of $0.08. It missed the average revenue estimate of $469.8 million.

Quoting Management: “Our OCTG business performance was excellent during the quarter considering the decline in rig count and weakness in selling prices,” stated Dan O’Leary, the Company’s Chairman and Chief Executive Officer. “The near term prospects of our E&I business are being affected by the steel pricing environment and delays in contract awards and customer purchasing decisions. We expect to get a clearer picture soon regarding the timing of these anticipated customer expenditures. As a result, we are withdrawing our previous guidance and plan to address 2013 guidance at a later time.”

Key Stats (on next page)…

Revenue decreased 22.21% from $522.08 million in the previous quarter. EPS decreased to $-0.16 in the quarter versus EPS of $0.25 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.29 to a profit $0.14. For the current year, the average estimate has moved down from a profit of $1.40 to a profit of $1.02 over the last ninety days.

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