Chicago Bridge & Iron
) posted second-quarter 2014 adjusted earnings of $1.36 per share,
surpassing the Zacks Consensus Estimate of $1.27 per share by 7.1%.
The adjusted earnings marked an increase of 30.8% from $1.04 a
share reported in the prior-year quarter. On a GAAP basis, earnings
per share increased 33.7% year over year to $1.31.
Key factors, which drove the year-over-year growth are increased
backlog, growing demand for energy across the globe, diligent
operational execution coupled with increased focus on safety and
its unique business model.
Total Revenue & Contracts
Revenues for the quarter rose 15.6% year over year to $3.3
billion. The rise was buoyed by the strong performance of its
Engineering, Construction and Maintenance segment on the back of
increased demand for energy infrastructure, especially in the LNG,
gas processing as well as oil and gas markets throughout the world.
Revenues were in line with the Zacks Consensus Estimate.
In the second quarter of 2014, new contracts totaled $4.2
billion (up 67.3% year over year), driven by new deals penned by
the Engineering, Construction and Maintenance segments. At the end
of the quarter, the backlog level stood at $31.5 billion.
Engineering, Construction and Maintenance
segment's revenues increased 27.5% year over year to $2.3 billion.
The increase was driven by a significant improvement in the
end-markets. At the end of the quarter the segment had backlog
level of approximately $20 billion.
reported second-quarter 2014 revenues of $641.2 million, reflecting
a decline of 5.1% year over year.
segment's revenues also decreased 3.6% to $155.5 million. However,
the segment had over $500 million worth new contracts in the
segment reported a revenue decline of 4.8% to $206.9 million in the
quarter. In the quarter, the segment had new contracts worth $280
Gross profit for the quarter improved 28.3% year over to $381.2
million while gross margin increased 120 basis points year over
year to 11.6%. Operating income was $260.2 million, up 40.3% year
over year. Operating margin also increased 140 basis points to
Balance Sheet & Cash Flow
Exiting the quarter, the company had cash and cash equivalents
of $374.3 million, down from $426.6 million in the prior-year
quarter. The company had shareholders' equity of more than $2.7
billion, along with long-term debt of about $1.6 billion. Cash flow
from operating activities was negative $374.4 million compared with
negative $300.7 million in the prior-year quarter.
Chicago Bridge & Iron currently has a Zacks Rank #3 (Hold).
Some better-ranked stocks in the sector include CLARCOR Inc. (
), China Merchants Holdings (International) Company Limited (
) and Macquarie Infrastructure Company LLC (
). All three stocks carry a Zacks Rank #2 (Buy).
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