Please ensure Javascript is enabled for purposes of website accessibility

Carbo Ceramics Earnings Preview

By Narrative Science – Updated Apr 6, 2017 at 8:23PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

CARBO Ceramics will unveil its latest earnings on Thursday, July 28.

Investors are on the edge of their collective seats, hoping that Carbo Ceramics (NYSE: CRR) will top analyst expectations for the fifth consecutive quarter. The company will unveil its latest earnings on Thursday, July 28. Carbo Ceramics is a supplier of ceramic proppant, the provider of the world's most popular fracture simulation software, and a provider of fracture design, engineering, and consulting services.

What analysts say:

  • Buy, sell, or hold?: Analysts think investors should stand pat on Carbo Ceramics, with eight of 14 analysts rating it a hold. Analysts don't like Carbo Ceramics as much as competitor Flotek Industries overall. The one analyst following Flotek Industries rates it a buy, compared with five of 14 for CARBO Ceramics. Analysts still rate the stock a hold, but they are a bit more wary about it compared with three months ago.
  • Revenue forecasts: On average, analysts predict $146.7 million in revenue this quarter. That would represent a rise of 31.5% from the year-ago quarter.
  • Wall Street earnings expectations: The average analyst estimate is earnings of $1.26 per share. Estimates range from $1.09 to $1.45.

What our community says:
CAPS All-Stars are solidly behind the stock, with 95% awarding it an "outperform" rating. The community at large concurs with the All-Stars, with 94.9% giving it a rating of "outperform." Fools are gung-ho about Carbo Ceramics and haven't been shy with their opinions lately, logging 108 posts in the past 30 days. Even with a robust four out of five stars, Carbo Ceramics' CAPS rating falls a little short of the community's upbeat outlook.

Management:
Carbo Ceramics' profit has risen year over year by an average of 65.9%. The company boosted its gross margin by 6.7 percentage points in the last quarter. Revenue rose 22.2% while cost of sales rose 9.8% to $88.8 million from a year earlier.

Now let's look at how efficient management is at running the business. Traditionally, margins represent the efficiency with which companies capture portions of sales dollars. The following table shows gross, operating, and net margins over the past four quarters. 

Quarter Q1 Q4 Q3 Q2
Gross Margin 41.1% 38.8% 37.5% 37%
Operating Margin 30.6% 25.8% 26.3% 25.8%
Net Margin 20% 17.4% 17% 16.8%
We can help you keep tabs on your companies with My Watchlist, our free, personalized service. Add Carbo Ceramics now.

Try any of our Foolish newsletter services free for 30 days. We Fools don't 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.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

CARBO Ceramics Inc. Stock Quote
CARBO Ceramics Inc.
CRR

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
329%
 
S&P 500 Returns
106%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 09/24/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.