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D.A. Davidson Sees Second Quarter Earnings Shortfall For The Babcock & Wilcox Co.

Dwight Einhorn

In a report published Thursday, D.A. Davidson analyst John B. Rogers reiterated a Neutral rating and $37.00 price target on The Babcock & Wilcox Co. (NYSE: BWC).

In the report, D.A. Davidson noted, “GAAP EPS of $0.24 per share declined from $0.65 last year and was below our estimate of $0.49. Adjusted EPS, excluding restructuring charges and other unusual costs of $0.44 declined from $0.72 last year and was below our estimate of $0.51 and consensus of $0.49...As shown in the segment data, most of the variance in operating results relative to the prior year was due to a runoff of Power Generation segment work, as scrubber projects were completed and capital spending by utilities declined in 2014. Additionally contribution from the Nuclear operations segment also declined as work under government contracts slowed.”

The Babcock & Wilcox Co. closed on Wednesday at $30.90.

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