The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Vantage Drilling beat slightly on revenue and exceeded expectations on earnings per share.
Compared to the prior-year quarter, revenue improved significantly and GAAP loss per share dropped.
Margins improved across the board.
Vantage Drilling reported revenue of $121.3 million. The six analysts polled by S&P Capital IQ predicted a top line of $119.9 million on the same basis. GAAP reported sales were 43% higher than the prior-year quarter's $84.9 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 -$0.03. The seven earnings estimates compiled by S&P Capital IQ predicted -$0.04 per share. GAAP EPS were -$0.03 for Q4 against -$0.05 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 40.5%, 1,520 basis points better than the prior-year quarter. Operating margin was 22.2%, 1,440 basis points better than the prior-year quarter. Net margin was -7.7%, 760 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $128.7 million. On the bottom line, the average EPS estimate is -$0.01.
Next year's average estimate for revenue is $560.4 million. The average EPS estimate is -$0.12.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 183 members out of 194 rating the stock outperform, and 11 members rating it underperform. Among 51 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 46 give Vantage Drilling a green thumbs-up, and five give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Vantage Drilling is outperform, with an average price target of $2.06.
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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.