Atwood Oceanics's Earnings Beat Last Year's by 73%

Atwood Oceanics (NYSE: ATW  ) reported earnings on July 31. Here are the numbers you need to know.

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

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

Margins expanded across the board.

Revenue details
Atwood Oceanics reported revenue of $272.7 million. The 10 analysts polled by S&P Capital IQ looked for revenue of $271.5 million on the same basis. GAAP reported sales were 53% higher than the prior-year quarter's $178.6 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.

EPS details
EPS came in at $1.37. The 15 earnings estimates compiled by S&P Capital IQ averaged $1.35 per share. GAAP EPS of $1.37 for Q3 were 73% higher than the prior-year quarter's $0.79 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.

Margin details
For the quarter, gross margin was 56.7%, 560 basis points better than the prior-year quarter. Operating margin was 40.6%, 510 basis points better than the prior-year quarter. Net margin was 33.0%, 400 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $284.9 million. On the bottom line, the average EPS estimate is $1.46.

Next year's average estimate for revenue is $1.05 billion. The average EPS estimate is $5.18.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 2,372 members out of 2,395 rating the stock outperform, and 23 members rating it underperform. Among 621 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 615 give Atwood Oceanics a green thumbs-up, and six 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 $60.44.

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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. The Motley Fool recommends Atwood Oceanics. The Motley Fool owns shares of 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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  • Report this Comment On August 01, 2013, at 3:34 PM, griderX wrote:

    "Next year's average estimate for revenue is $1.05 billion. The average EPS estimate is $5.18"

    Correction: FY14 Estimates are $1.30 Billion and EPS $6.32

    What you stated above is for this year FY13.

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