Market Overview

Earnings Preview For Shaw Group (SHAW)


Shaw Group Inc. (NYSE: SHAW) will report 2011 fiscal second-quarter results before the opening bell on Monday. Analysts expect the company to earn $0.47 per share on revenues of $1.54 billion. Earnings estimates have slipped $0.04 over the past week for the quarter.

The company provides technology, engineering, procurement, construction, maintenance, fabrication, manufacturing, consulting, remediation, and facilities management services to multinational and national oil companies, industrial corporations, regulated utilities, independent and merchant power producers, and government agencies worldwide.

Investors will focus on Shaw's nuclear power prospects given the uncertain atmosphere surrounding the industry following the Japanese earthquake and tsunami. Shaw is an industry leader in nuclear construction, so investors will be eager to hear management's take on how the company is handling the situation.

Shaw reported a surprise loss of $0.06 last quarter which was a 220% negative surprise. The stock is not cheap at 19.7x current-year estimates of $1.77 per share and is flat on the year despite a strong stock market. Management will have to paint a rosy view of the future and clear up nuclear uncertainties for investors to bid the stock higher.


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