The shares of engineering firm
The Babcock & Wilcox Company
) soared to a 52-week high of $30.23 on Tuesday, May 28, 2013,
buoyed by a slew of positive developments. The closing price of
the company as of the said date was $29.95, representing an
impressive 1-year return of 20.67%. Additionally, Babcock &
Wilcox - with a market cap of $3.36 billion - boasts of a
long-term expected earnings growth rate of 13.50%.
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Earlier this month, Babcock & Wilcox reported first quarter
2013 adjusted earnings per share of 46 cents, below the year-ago
adjusted earnings of 50 cents. But its revenue improved 5.2% from
the year-earlier level to 805.4 million. This was aided by strong
performance by the Power Generation segment.
Last week, Babcock & Wilcox won a U.S. Naval Reactors Program
contract to render procurement and assembling services. The
company will execute the deal, worth $366 million, through its
affiliate Babcock & Wilcox Nuclear Operations Group Inc.
Earlier in Feb, Babcock & Wilcox received two contracts worth
$36 million, also from U.S. Naval Reactors Program to render
procurement and assembling services.
With the success of the past contracts, Babcock & Wilcox is
on an expansion path. It looks forward to more such opportunistic
programs in 2013 to gain a significant market share. We believe
such accomplishments will garner profits for Babcock & Wilcox
in the upcoming quarters.
Headquartered in Charlotte, N.C., Babcock & Wilcox is engaged
in providing clean energy technology and services for the
nuclear, fossil and renewable power markets worldwide. The
company - which was spun off as an independent and publicly
traded entity from energy-focused engineering and construction
) in Aug 2010 - operates in four business units: Power
Generation, Nuclear Operations, Technical Services and Nuclear
Babcock & Wilcox currently carries a Zacks Rank #3 (Hold),
implying that it is expected to perform in line with the broader
U.S. equity market over the next one to three months.
However, certain other engineering firms in the energy sector
Tri-Tech Holding Inc.
) are expected to outperform the equity market in the next one to
three months. Both the stocks currently hold a Zacks Rank #1