The Babcock & Wilcox Earnings: Everything You Must Know Now

The Babcock & Wilcox Company (NYSE:BWC) delivered a profit 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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The Babcock & Wilcox Company Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 17.95% to $0.46 in the quarter versus EPS of $0.39 in the year-earlier quarter.

Revenue: Rose 5.16% to $805.42 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: The Babcock & Wilcox Company reported adjusted EPS income of $0.46 per share. By that measure, the company missed the mean analyst estimate of $0.49. It missed the average revenue estimate of $826.64 million.

Quoting Management: “We are pleased with revenue growth this quarter in both our Power Generation and Nuclear Operations segments. The contributions to operating income from Nuclear Operations and Technical Services remain strong and are meeting our expectations. Operating results in Power Generation this quarter reflect both the competitive environmental market and seasonal conditions that produce fewer project closeout opportunities. We expect full year results for this segment will meet previously discussed operating income margins,” said E. James Ferland, President and Chief Executive Officer of B&W. “Further, we believe the GAO decision to sustain the protest filed in regard to the combined Y-12/Pantex procurement decision supports our concerns about the initial award of this contract. While we await a final decision on a path forward from NNSA, B&W remains focused on operating both sites safely and securely.”

Key Stats (on next page)…

Revenue decreased 6.92% from $865.3 million in the previous quarter. EPS decreased 9.8% from $0.51 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 $0.54 to a profit $0.62. For the current year, the average estimate has moved up from a profit of $2.12 to a profit of $2.31 over the last ninety days.

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