Layne Christensen Earnings: Everything You Must Know Now

Layne Christensen Co. (NASDAQ:LAYN) 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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Layne Christensen Co. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased to $-1.22 in the quarter versus EPS of $0.19 in the year-earlier quarter.

Revenue: Decreased 18.11% to $226.4 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Layne Christensen Co. reported adjusted EPS loss of $1.22 per share. By that measure, the company missed the mean analyst estimate of $-0.21. It missed the average revenue estimate of $251.8 million.

Quoting Management: “Our year-over-year comparisons were down, impacted by losses at Geoconstruction, higher corporate expenses, including costs related to our headquarters consolidation to The Woodlands, TX, and reduced profits at Mineral Exploration. However, we are pleased with our sequential quarterly progress as we operate in an environment that is distinctly different from last year. When compared to Q4 FY 2013, profits in Q1 FY 2014 improved at Water Resources, Inliner, Heavy Civil and Mineral Exploration. We expect that our performance will improve as the year progresses. The headwinds at Geoconstruction are abating, and we are beginning to book new projects at this division; we expect our efforts in this regard will begin to manifest in Q3 FY 2014. We are very pleased with the significant improvement at Heavy Civil, where revenues rose and our segment losses narrowed substantially. We continue to expect that Heavy Civil will return to profitability by mid-calendar 2013. Inliner continued to produce good results and we expect this business will demonstrate further growth in FY 2014. Mineral Exploration operated profitably despite a sluggish global commodities market. Although we believe that this market will be soft for most of FY 2014, we are taking the necessary steps to maintain profitability at this business until the industry recovers. The growth of our Energy Services Division continues, as evidenced by higher quarter-over-quarter revenues and the launch of our Water Transfer business in Q1 FY 2014. We expect to introduce additional solutions under our Energy Services banner later this year. We remain committed to the One Layne philosophy of collaboration across divisions; as a result of its adoption, we have won several important projects and we are currently pursuing $1.1 billion of potential projects that leverage and combine the unique skill sets of our division professionals.”

Key Stats (on next page)…

Revenue decreased 1.45% from $229.74 million in the previous quarter. EPS decreased to $-1.22 in the quarter versus EPS of $-0.91 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 $0.34 to a loss $0.02. For the current year, the average estimate has moved down from a profit of $1.35 to a profit of $0.17 over the last ninety days.

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