The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Rosetta Resources beat expectations on revenues and whiffed on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share grew.
Margins expanded across the board.
Rosetta Resources reported revenue of $136.3 million. The 14 analysts polled by S&P Capital IQ hoped for revenue of $127.4 million on the same basis. GAAP reported sales were 52% higher than the prior-year quarter's $89.4 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 $0.61. The 20 earnings estimates compiled by S&P Capital IQ anticipated $0.73 per share. GAAP EPS were $0.61 for Q4 compared to -$0.02 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 84.8%, 140 basis points better than the prior-year quarter. Operating margin was 39.9%, 1,860 basis points better than the prior-year quarter. Net margin was 23.6%, 2,510 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $138.2 million. On the bottom line, the average EPS estimate is $0.72.
Next year's average estimate for revenue is $658.9 million. The average EPS estimate is $3.57.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 286 members out of 303 rating the stock outperform, and 17 members rating it underperform. Among 92 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 90 give Rosetta Resources a green thumbs-up, and two give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Rosetta Resources is outperform, with an average price target of $58.89.
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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. 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.