Superior Energy Services Crushes Earnings Estimates

Superior Energy Services (NYSE: SPN  ) reported earnings on April 25. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), Superior Energy Services met expectations on revenues and crushed expectations on earnings per share.

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

Gross margins contracted, operating margins dropped, net margins were steady.

Revenue details
Superior Energy Services booked revenue of $1.14 billion. The nine analysts polled by S&P Capital IQ hoped for revenue of $1.14 billion on the same basis. GAAP reported sales were 17% higher than the prior-year quarter's $966.8 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 $0.52. The 17 earnings estimates compiled by S&P Capital IQ forecast $0.40 per share. Non-GAAP EPS of $0.52 for Q1 were 27% lower than the prior-year quarter's $0.71 per share. (The prior-year quarter included -$0.13 per share in earnings from discontinued operations.) GAAP EPS of $0.40 for Q1 were 4.8% lower than the prior-year quarter's $0.42 per share. (The prior-year quarter included -$0.13 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 37.7%, 570 basis points worse than the prior-year quarter. Operating margin was 11.3%, 630 basis points worse than the prior-year quarter. Net margin was 5.6%, much about the same as the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $1.19 billion. On the bottom line, the average EPS estimate is $0.51.

Next year's average estimate for revenue is $4.86 billion. The average EPS estimate is $2.16.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 844 members out of 855 rating the stock outperform, and 11 members rating it underperform. Among 161 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 157 give Superior Energy Services a green thumbs-up, and four give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Superior Energy Services is outperform, with an average price target of $31.62.

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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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8/27/2014 12:48 PM
SPN $35.68 Up +0.04 +0.11%
Superior Energy Se… CAPS Rating: *****

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