Vantage Drilling Beats on the Top Line

Vantage Drilling (AMEX: VTG) reported earnings on Feb. 15. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Vantage Drilling beat expectations on revenues and missed expectations on earnings per share.

Compared to the prior-year quarter, revenue expanded slightly and GAAP loss per share increased.

Gross margins grew, operating margins expanded, net margins contracted.

Revenue details
Vantage Drilling reported revenue of $123.0 million. The six analysts polled by S&P Capital IQ foresaw revenue of $114.9 million on the same basis. GAAP reported sales were 29% higher than the prior-year quarter's $95.2 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 -$0.04. The nine earnings estimates compiled by S&P Capital IQ predicted -$0.02 per share. GAAP EPS were -$0.45 for Q4 compared to -$0.04 per share for the prior-year quarter.

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 52.2%, 2,800 basis points better than the prior-year quarter. Operating margin was 30.6%, 230 basis points better than the prior-year quarter. Net margin was -108.7%, 9,890 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $156.3 million. On the bottom line, the average EPS estimate is $0.03.

Next year's average estimate for revenue is $674.0 million. The average EPS estimate is $0.19.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 183 members out of 195 rating the stock outperform, and 12 members rating it underperform. Among 49 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 44 give Vantage Drilling 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 Vantage Drilling is outperform, with an average price target of $2.20.

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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 has no position in any of the stocks mentioned. 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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