The 10-second takeaway
For the quarter ended March 31 (Q1), Rowan beat expectations on revenues and beat expectations on earnings per share.
Compared with the prior-year quarter, revenue shrank and GAAP earnings per share expanded significantly.
Gross margins contracted, operating margins improved, net margins shrank.
Rowan logged revenue of $333.5 million. The 19 analysts polled by S&P Capital IQ expected a top line of $314.6 million on the same basis. GAAP reported sales were 62% higher than the prior-year quarter's $206.0 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.47. The 28 earnings estimates compiled by S&P Capital IQ predicted $0.35 per share. GAAP EPS of $0.40 for Q1 were 60% higher than the prior-year quarter's $0.25 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 45.4%, 60 basis points worse than the prior-year quarter. Operating margin was 20.8%, 350 basis points better than the prior-year quarter. Net margin was 14.8%, 80 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $343.9 million. On the bottom line, the average EPS estimate is $0.68.
Next year's average estimate for revenue is $1.37 billion. The average EPS estimate is $2.63.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 588 members out of 619 rating the stock outperform, and 31 members rating it underperform. Among 168 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 161 give Rowan a green thumbs-up, and seven give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Rowan is outperform, with an average price target of $43.64.
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