Atwood Oceanics Beats on Both Top and Bottom Lines

Atwood Oceanics (NYSE: ATW  ) reported earnings on Aug. 3. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended June 30 (Q3), Atwood Oceanics beat expectations on revenues and earnings per share.

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

Margins contracted across the board.

Revenue details
Atwood Oceanics logged revenue of $178.6 million. The nine analysts polled by S&P Capital IQ predicted sales of $170.8 million on the same basis. GAAP reported sales were 10% higher than the prior-year quarter's $162.1 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 $0.79. The 11 earnings estimates compiled by S&P Capital IQ predicted $0.74 per share. GAAP EPS of $0.79 for Q3 were 31% lower than the prior-year quarter's $1.15 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 51.1%, 1,620 basis points worse than the prior-year quarter. Operating margin was 35.5%, 1,940 basis points worse than the prior-year quarter. Net margin was 29.0%, 1,740 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $223.6 million. On the bottom line, the average EPS estimate is $1.26.

Next year's average estimate for revenue is $760.4 million. The average EPS estimate is $3.88.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 2,360 members out of 2,381 rating the stock outperform, and 21 members rating it underperform. Among 566 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 561 give Atwood Oceanics a green thumbs-up, and five give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Atwood Oceanics is outperform, with an average price target of $52.96.

Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool owns shares of Atwood Oceanics. Motley Fool newsletter services recommend Atwood Oceanics. Try any of our Foolish newsletter services free for 30 days. We Fools may not 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.


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