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The Gory Details on Cameco's Double Miss

Thursday - 5/2/2013, 2:00am  ET

Cameco reported earnings on May 1. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), Cameco missed estimates on revenues and missed estimates on earnings per share.

Compared to the prior-year quarter, revenue dropped significantly. Non-GAAP earnings per share dropped significantly. GAAP earnings per share contracted significantly.

Margins dropped across the board.

Revenue details
Cameco booked revenue of $436.5 million. The five analysts polled by S&P Capital IQ expected to see sales of $448.6 million on the same basis. GAAP reported sales were 23% lower than the prior-year quarter's $564.4 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.07. The 12 earnings estimates compiled by S&P Capital IQ forecast $0.09 per share. Non-GAAP EPS of $0.07 for Q1 were 77% lower than the prior-year quarter's $0.31 per share. GAAP EPS of $0.02 for Q1 were 94% lower than the prior-year quarter's $0.33 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 33.2%, 890 basis points worse than the prior-year quarter. Operating margin was 3.9%, much worse than the prior-year quarter. Net margin was 1.9%, much worse than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $655.4 million. On the bottom line, the average EPS estimate is $0.24.

Next year's average estimate for revenue is $2.79 billion. The average EPS estimate is $1.15.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 1,786 members out of 1,830 rating the stock outperform, and 44 members rating it underperform. Among 291 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 282 give Cameco a green thumbs-up, and nine give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Cameco is outperform, with an average price target of $25.03.

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This article was originally published as The Gory Details on Cameco's Double Misson Fool.com

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