The 10-second takeaway
For the quarter ended Jan. 31 (Q4), Mitcham Industries crushed expectations on revenue and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share grew significantly.
Margins expanded across the board.
Mitcham Industries notched revenue of $37.0 million. The four analysts polled by S&P Capital IQ predicted revenue of $30.3 million on the same basis. GAAP reported sales were 88% higher than the prior-year quarter's $19.7 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 $0.77. The four earnings estimates compiled by S&P Capital IQ predicted $0.57 per share. GAAP EPS of $0.77 for Q4 were 353% higher than the prior-year quarter's $0.17 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 57.4%, 1,150 basis points better than the prior-year quarter. Operating margin was 39.3%, 2,260 basis points better than the prior-year quarter. Net margin was 27.4%, 1,850 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $38.3 million. On the bottom line, the average EPS estimate is $0.83.
Next year's average estimate for revenue is $144.4 million. The average EPS estimate is $2.65.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 316 members out of 322 rating the stock outperform, and six members rating it underperform. Among 72 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), all 72 give Mitcham Industries a green thumbs-up.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Mitcham Industries is outperform, with an average price target of $29.67.
Are you missing a big story in the energy space? Read about it in our free report: "1 Stock to Own Before Nat Gas Act 2011 Becomes Law." Click here for instant access to this free report.
- Add Mitcham Industries to My Watchlist.
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.