Seeking Alpha
Profile| Send Message| ()  

Shaw Group Inc. (SHAW) provides technology, engineering, procurement, construction, maintenance, fabrication, manufacture, consulting, remediation, and facilities management services to electric utilities, independent and merchant power producers, government agencies, multinational and national oil companies, and industrial corporations worldwide.

It is scheduled to report its Q3 2012 results on July 10, 2012, before the market opens. In this article I will recap the historical results of the company, latest EPS estimates vs. surprises, latest developments and closest competitors' development.

Technical Overview


The stock has a market capitalization of $1.80B and is currently trading at $27.25 with a 52 week range of $18.98 - $32.49. The stock performance year to date: 1.30%. It is currently trading above 20and 200SMA, but below 50SMA.

Key Metrics

  • Trailing P/E: N/A
  • Forward P/E: 10.77
  • Price/Sales: 0.30
  • Price/Book: 2.10
  • Total Debt: 1.64B
  • Annual dividend yield: N/A
  • Return on Equity: -4.18%
  • Return on Assets: 0.10%

Recent EPS Actuals vs. Estimates

The company has met or beaten analysts' estimates in the last two quarters. In the last quarter, it reported $0.46 EPS, in-line with analyst estimates.

The consensus EPS is $0.58 based on 7 analysts' estimates, up from ($0.86) loss a year ago. Revenue estimates are $1.49B - same as a year ago. The median target price by analysts for the stock is $34.25.

Average recommendation: Overweight

Source: Marketwatch

Analyst Upgrades and Downgrades

  • On April 13, 2012, the company was upgraded from Hold to Buy at BB&T Capital Mkts.
  • On March 30, 2012, Barclays reiterated Equal Weight rating for the company.

Latest Developments

  • On June 26, 2012, Shaw Group Inc announced it had been awarded a new contract to implement a fleetwide services program for Saudi Electricity Company's oil and gas-fired power plants throughout the Kingdom of Saudi Arabia.
  • On May 21, 2012, Shaw Group Inc announced that it had entered into a definitive agreement to sell substantially all of its Energy & Chemicals business to Technip SA. Under the terms of the agreement, Technip will acquire substantially all of the business of the Energy & Chemicals Group for approximately $300 million in cash consideration, subject to adjustment based on the Energy & Chemicals Group's debt and working capital levels at closing.
  • On May 16, 2012, Shaw Group Inc announced that it had signed a new contract with Wolf Creek Nuclear Operating Corporation to provide maintenance and other support services to its nuclear power plant northeast of Burlington, Kan. The Wolf Creek Generating Station provides energy for approximately 800,000 residences in Kansas and Missouri.
  • On March 29, 2012, Shaw Group Inc announced that for fiscal 2012, it expected revenue of approximately $5.5-$6.0 billion and diluted earnings per share (EPS), excluding Westinghouse in the range of $2.05-$2.15 per share.
  • On March 19, 2012, Shaw Group Inc announced it had formed an exclusive alliance with Total Petrochemicals to jointly market and license Total Petrochemicals' polystyrene technology on a worldwide basis.
  • On March 12, 2012, Shaw Group Inc announced it had been awarded contracts to provide a process design package and technology license for the addition of a 30,000 barrels per day deep catalytic cracking (DCC) unit to IRPC's 215,000 barrels per day refinery in Rayong, Thailand.
  • On February 27, 2012, Shaw Group Inc announced that it had signed a new contract with Arizona Public Service Co. (APS) to provide maintenance and construction services to eight fossil power plants in Arizona and New Mexico.
  • On February 6, 2012, Shaw Group Inc announced that it had been awarded a contract to provide the technology license and process design package for the revamp of a residue fluid catalytic cracking (RFCC) unit for Star Petroleum Refining Company in Map Ta Phut, Thailand.
  • On January 9, 2012, The Shaw Group Inc. announced that it had been awarded an indefinite delivery/indefinite quantity contract to provide nationwide environmental and restoration services for the U.S.

Competitors

Shaw Group Inc. operates in Heavy Construction industry. The company could be compared to The Babcock & Wilcox Company (BWC), Matrix Service Co. (MTRX), Primoris Services Corporation (PRIM), and URS Corporation (URS). Below is the table comparison of the most important ratios between these companies and the industry.

Below is the chart comparison with the stock price changes as a percentage for the selected companies and S&P 500 index for the last one-year period.

Click to enlargeSHAW Chart

SHAW data by YCharts

Competitors' Latest Development

  • On June 28, 2012, The Babcock & Wilcox Co announced that its subsidiary Babcock & Wilcox Nuclear Operations Group, Inc. (B&W NOG) had received two U.S. Naval Reactors Program contracts totaling approximately $82 million for the manufacture of steam generating components as well as disassembly and recovery of highly enriched uranium materials.
  • On June 19, 2012, Xebec Adsorption Inc announced that it had signed a co-operative marketing and teaming agreement with Primoris Services Corporation(Primoris) to jointly promote and sell a process solution for the associated gas, shale gas and upstream off-gases markets.
  • On June 6, 2012, The Babcock & Wilcox Co announced that its subsidiary Babcock & Wilcox Power Generation Group, Inc. (B&W PGG) has been awarded an engineering contract by South Korean engineering, procurement and construction (EPC) contractor Hyundai Engineering Co., Ltd. to begin design work on a coal-fired boiler for the Termotasajero Power Plant near Cúcuta, Colombia.
  • On June 4, 2012, The Babcock and Wilcox Co announced that its subsidiary Babcock & Wilcox Power Generation Group, Inc. (B&W PGG) has been awarded contracts valued at approximately $55 million to design and supply environmental control equipment and design and engineer a boiler economizer for Consumers Energy's J.H. Campbell Generating Complex near West Olive, Mich.
  • On June 4, 2012, Primoris Services Corp announced that its James Construction Group subsidiary has acquired the assets of Silva Contracting Company, Inc., Tarmac Materials, LLC and C3 Interests, LLC (collectively, "the Silva Companies").
  • On May 16, 2012, URS Corporation announced that the company's Oil & Gas division has been selected as the pipeline construction contractor for a Steam Assisted Gravity Drainage (OTCQB:SAGD) oil sands project in the Wood Buffalo Region near Fort McMurray, Alberta.
  • On May 9, 2012, The Babcock and Wilcox Co announced that its subsidiary Babcock & Wilcox Nuclear Operations Group, Inc. (B&W NOG) has received a $130 million contract for nuclear reactor components based on recent technological advances that will be used on the U.S. Navy's Virginia-Class submarines.
  • On May 9, 2012, Primoris Services Corp announced that its Board of Directors had declared a $0.03 per share cash dividend to stockholders of record as of June 29, 2012, payable on or about July 16, 2012.
  • On May 9, 2012, Primoris Services Corp announced new contracts and work authorizations totaling approximately $263.5 million for power, pipeline, gas utility, industrial, highway/infrastructure, water/wastewater, and parking structure projects throughout the continental United States.
  • On May 8, 2012, URS Corporation announced that On May 4, 2012, the company declared a quarterly cash dividend of $0.20 per common share for the second quarter of 2012.
  • On April 30, 2012, The Babcock and Wilcox Co announced that its subsidiary Babcock & Wilcox Power Generation Group, Inc. (B&W PGG) has been awarded a contract worth approximately $150 million to design, supply and erect environmental equipment for Alliant Energy subsidiary Wisconsin Power and Light Company's (WPL) coal-fired Columbia Energy Center in Pardeeville, Wis.
  • On April 27, 2012, URS Corporation announced that the Company has been awarded an indefinite delivery/indefinite quantity, multiple award contract for education training products and services for the Naval Education Training Command in conjunction with Naval Education Training and Professional Development and Technology Center in Pensacola, Florida.
  • On April 26, 2012, The Babcock and Wilcox Co announced that its subsidiary Babcock & Wilcox Canada Ltd. (B&W Canada) has been awarded a contract valued at more than $25 million from SaskPower to design and replace the upper frontwall and a portion of the reheater at SaskPower`s Shand Power Station near Estevan, Saskatchewan.
  • On April 23, 2012, The Babcock and Wilcox Co announced that Nuclear Waste Partnership LLC has been awarded a contract from the U.S. Department of Energy for management and operations at the Waste Isolation Pilot Plant (WIPP) in Carlsbad, New Mexico.
  • On April 20, 2012, URS Corporation announced that a URS-led partnership has been awarded a contract by the U.S. Department of Energy to manage and operate the Waste Isolation Pilot Plant (WIPP) near Carlsbad, New Mexico.
  • On April 12, 2012, The Babcock and Wilcox Co announced that its subsidiary Babcock & Wilcox Power Generation Group, Inc. (B&W PGG) has been awarded a contract to engineer, procure and construct (EPC) environmental control systems for three units at Ascend Performance Materials' Decatur, Ala. manufacturing plant.
  • On April 9, 2012, The Babcock and Wilcox Co announced that its subsidiary Babcock & Wilcox Power Generation Group, Inc. (B&W PGG) had been awarded a contract valued at more than $30 million to design and supply a selective catalytic reduction (SCR) system for Xcel Energy's coal-fired Pawnee Generating Station in Brush, Colo.
  • On April 5, 2012, The Babcock and Wilcox Co announced that for fiscal 2012 on a consolidated basis, it expects double digit, year over year revenue growth and and operating earnings are expected to remain stable at the fiscal 2011 record levels.
  • On March 13, 2012, URS Corporation announced that URS, as a partner in a limited liability company (LLC) with Dewberry, has been awarded an indefinite delivery/indefinite quantity contract by the Federal Emergency Management Agency (FEMA) to provide technical support for the agency's Public Assistance Program throughout the United States and its territories.
  • On March 13, 2012, Primoris Services Corp announced that it has acquired Sprint Pipeline Services, L.P. (Sprint). Based in Pearland (Houston), Texas, Sprint provides a comprehensive range of pipeline construction, maintenance, upgrade, fabrication and specialty services primarily in the southeast United States.

Sources: Yahoo Finance, Google Finance, Marketwatch, Finviz, Reuters.

Source: Earnings Preview: Shaw Group Inc.