The Babcock & Wilcox Earnings: Here’s Why Investors Like These Results

The Babcock & Wilcox Company (NYSE:BWC) delivered a profit and missed Wall Street’s expectations, BUT beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 0.03%.

The Babcock & Wilcox Company Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 20.37% to $0.65 in the quarter versus EPS of $0.54 in the year-earlier quarter.

Revenue: Rose 3.93% to $886.1 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: The Babcock & Wilcox Company reported adjusted EPS income of $0.65 per share. By that measure, the company missed the mean analyst estimate of $0.67. It beat the average revenue estimate of $875.04 million.

Quoting Management: “Overall, B&W’s second quarter results reflect solid performances across our business units, highlighted by improved bookings and revenue, as well as the benefit of the DOE grant,” said E. James Ferland, President and Chief Executive Officer of B&W. “What would have been an exceptionally strong quarter for operating income and margin was impacted by the recognition of significant losses on a single project. Claims against the customer are substantial in value and any recovery of these additional losses will be realized in future periods.”

Key Stats (on next page)…

Revenue increased 10.02% from $805.42 million in the previous quarter. EPS increased 41.3% from $0.46 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 $0.56 to a profit $0.57. For the current year, the average estimate is a profit of $2.3, which is the same with that ninety days ago.

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

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