The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Ensco beat slightly on revenue and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly and GAAP earnings per share improved.
Margins shrank across the board.
Ensco chalked up revenue of $1.00 billion. The 18 analysts polled by S&P Capital IQ expected to see revenue of $988.4 million on the same basis. GAAP reported sales were much higher than the prior-year quarter's $408.5 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 $0.99. The 26 earnings estimates compiled by S&P Capital IQ averaged $0.95 per share. GAAP EPS of $0.99 for Q4 were 6.5% higher than the prior-year quarter's $0.93 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 48.5%, 310 basis points worse than the prior-year quarter. Operating margin was 30.5%, 150 basis points worse than the prior-year quarter. Net margin was 22.9%, 960 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $1.07 billion. On the bottom line, the average EPS estimate is $1.29.
Next year's average estimate for revenue is $4.53 billion. The average EPS estimate is $5.73.
The stock has a five-star rating (out of five) at Motley Fool CAPS. Among 344 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 338 give Ensco 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 Ensco is outperform, with an average price target of $63.82.
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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 owns shares of Ensco. 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.