The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Rowan beat expectations on revenues and whiffed on earnings per share.
Compared to the prior-year quarter, revenue shrank significantly and GAAP earnings per share dropped significantly.
Margins dropped across the board.
Rowan Companies booked revenue of $275.1 million. The 21 analysts polled by S&P Capital IQ expected revenue of $267.9 million on the same basis. GAAP reported sales were 32% higher than the prior-year quarter's $208.5 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.27. The 29 earnings estimates compiled by S&P Capital IQ predicted $0.31 per share on the same basis. GAAP EPS of $0.35 for Q4 were 22% lower than the prior-year quarter's $0.45 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 40.9%, 1,110 basis points worse than the prior-year quarter. Operating margin was 12.7%, 1,090 basis points worse than the prior-year quarter. Net margin was 16.4%, 1,110 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $320.4 million. On the bottom line, the average EPS estimate is $0.47.
Next year's average estimate for revenue is $1.39 billion. The average EPS estimate is $2.89.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 595 members out of 625 rating the stock outperform, and 30 members rating it underperform. Among 206 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 199 give Rowan a green thumbs-up, and seven give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Rowan is outperform, with an average price target of $43.12.
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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.