The 10-second takeaway
For the quarter ended Dec. 31 (Q4), RigNet beat slightly on revenues and whiffed on earnings per share.
Compared to the prior-year quarter, revenue increased significantly, and GAAP earnings per share improved.
Gross margins expanded, operating margins shrank, and net margins grew.
RigNet recorded revenue of $29.8 million. The two analysts polled by S&P Capital IQ foresaw revenue of $29.3 million on the same basis. GAAP reported sales were 22% higher than the prior-year quarter's $24.3 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 $0.12. The three earnings estimates compiled by S&P Capital IQ forecast $0.18 per share. GAAP EPS were $0.12 for Q4 compared to -$0.88 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 56.0%, 220 basis points better than the prior-year quarter. Operating margin was 14.7%, 180 basis points worse than the prior-year quarter. Net margin was 6.6%, 2,630 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $29.2 million. On the bottom line, the average EPS estimate is $0.19.
Next year's average estimate for revenue is $120.7 million. The average EPS estimate is $0.85.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on RigNet is buy, with an average price target of $20.33.
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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.
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