Superior Energy Services Beats Estimates on Top and Bottom Lines

Superior Energy Services (NYSE: SPN  ) reported earnings on Feb. 23. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Superior Energy Services beat expectations on revenues and beat slightly on earnings per share.

Compared with the prior-year quarter, revenue improved significantly and GAAP earnings per share grew significantly.

Margins grew across the board.

Revenue details
Superior Energy Services logged revenue of $580.0 million. The eight analysts polled by S&P Capital IQ expected sales of $567.4 million on the same basis. GAAP reported sales were 27% higher than the prior-year quarter's $456.9 million.

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

EPS details
Non-GAAP EPS came in at $0.67. The 13 earnings estimates compiled by S&P Capital IQ predicted $0.66 per share on the same basis. GAAP EPS of $0.24 for Q4 were 500% higher than the prior-year quarter's $0.04 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 46.3%, 260 basis points better than the prior-year quarter. Operating margin was 16.1%, 600 basis points better than the prior-year quarter. Net margin was 3.3%, 260 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $860.6 million. On the bottom line, the average EPS estimate is $0.69.

Next year's average estimate for revenue is $4.80 billion. The average EPS estimate is $3.44.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 825 members out of 838 rating the stock outperform, and 13 members rating it underperform. Among 234 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 231 give Superior Energy Services a green thumbs-up, and three give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Superior Energy Services is buy, with an average price target of $41.10.

How did Superior Energy Services treat you during the oil spike in 2008 and the subsequent bust? More importantly, what are you doing to prepare for the next spike that some experts believe another spike may be just around the corner? Prepare yourself with a well-positioned energy stock we profile in "The Only Energy Stock You'll Ever Need." Get instant access to this free report.

Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings. He is the co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Read/Post Comments (2) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Add your comment.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 1791463, ~/Articles/ArticleHandler.aspx, 4/2/2015 12:57:10 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...