Rowan Companies Misses Where it Counts

Rowan Companies (NYSE: RDC  ) reported earnings on Feb. 28. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Rowan Companies met expectations on revenues and missed estimates on earnings per share.

Compared to the prior-year quarter, revenue grew significantly. GAAP earnings per share increased significantly.

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

Revenue details
Rowan Companies notched revenue of $354.2 million. The 20 analysts polled by S&P Capital IQ expected revenue of $355.9 million on the same basis. GAAP reported sales were 29% higher than the prior-year quarter's $275.1 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 $0.44. The 32 earnings estimates compiled by S&P Capital IQ forecast $0.49 per share. GAAP EPS of $0.44 for Q4 were 26% higher than the prior-year quarter's $0.35 per share. (The prior-year quarter included $0.10 per share in earnings from discontinued operations.)

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 45.3%, 440 basis points better than the prior-year quarter. Operating margin was 19.8%, 710 basis points better than the prior-year quarter. Net margin was 15.3%, 110 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $384.3 million. On the bottom line, the average EPS estimate is $0.65.

Next year's average estimate for revenue is $1.55 billion. The average EPS estimate is $2.35.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 570 members out of 601 rating the stock outperform, and 31 members rating it underperform. Among 161 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 153 give Rowan Companies a green thumbs-up, and eight give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Rowan Companies is outperform, with an average price target of $38.56.

Is Rowan Companies the right energy stock for you? Read about a handful of timely, profit-producing plays on expensive crude in "3 Stocks for $100 Oil." Click here for 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 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.

Read/Post Comments (1) | 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.

  • Report this Comment On February 28, 2013, at 8:57 PM, jd78 wrote:

    Very misleading:

    Rowan reported a profit of $54.1 million, or 44 cents a share - excluding repair costs related to a tanker explosion, pension-settlement costs and other items, adjusted earnings from continuing operations was 63 cents. Revenue jumped 29% to $354.2 million.

    Analysts projected earnings of 48-49 cents on revenue of $357 million.

    Average day rates were up 2.4% from a year earlier while rig utilization grew to 79% from 68% a year earlier.

    Your story does not take any of this into account and simply misleads that they missed earnings by .05 when they actually beat by .14 with a very slight 2.8million revenue miss. I see a lot more good than bad here.

Add your comment.

Compare Brokers

Fool Disclosure

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: 2286642, ~/Articles/ArticleHandler.aspx, 9/28/2016 1:44:43 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...

Today's Market

updated 4 hours ago Sponsored by:
DOW 18,228.30 133.47 0.74%
S&P 500 2,159.93 13.83 0.64%
NASD 5,305.71 48.22 0.92%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/27/2016 4:01 PM
RDC $13.35 Down -0.21 -1.55%
Rowan Companies CAPS Rating: ***