The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Newpark Resources met expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share increased significantly.
Margins grew across the board.
Newpark Resources chalked up revenue of $263.5 million. The 11 analysts polled by S&P Capital IQ looked for a top line of $265.6 million on the same basis. GAAP reported sales were 35% higher than the prior-year quarter's $194.5 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.22. The 13 earnings estimates compiled by S&P Capital IQ predicted $0.22 per share. GAAP EPS of $0.22 for Q4 were 38% higher than the prior-year quarter's $0.16 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 22.2%, 80 basis points better than the prior-year quarter. Operating margin was 12.9%, 10 basis points better than the prior-year quarter. Net margin was 8.3%, 70 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $270.9 million. On the bottom line, the average EPS estimate is $0.22.
Next year's average estimate for revenue is $1.12 billion. The average EPS estimate is $0.95.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 367 members out of 378 rating the stock outperform, and 11 members rating it underperform. Among 123 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 123 give Newpark Resources a green thumbs-up, and give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Newpark Resources is outperform, with an average price target of $12.23.
Over the decades, small-cap stocks, like Newpark Resources have provided market-beating returns, provided they're value priced and have solid businesses. Read about a pair of companies with a lock on their markets in "Too Small to Fail: Two Small Caps the Government Won't Let Go Broke." Click here for instant access to this free report.
- Add Newpark Resources to My Watchlist.
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. 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.