Helmerich & Payne
The 10-second takeaway
For the quarter ended March 31 (Q2), Helmerich & Payne beat expectations on revenue and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share grew significantly.
Gross margin dropped, operating margin dropped, and net margin expanded.
Helmerich & Payne tallied revenue of $770.0 million. The 14 analysts polled by S&P Capital IQ looked for revenue of $742.2 million on the same basis. GAAP reported sales were 27% higher than the prior-year quarter's $604.4 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 $1.13. The 22 earnings estimates compiled by S&P Capital IQ forecast $1.21 per share. GAAP EPS of $1.18 for Q2 were 30% higher than the prior-year quarter's $0.91 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 41.8%, 190 basis points worse than the prior-year quarter. Operating margin was 25.9%, 60 basis points worse than the prior-year quarter. Net margin was 16.8%, 50 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $770.9 million. On the bottom line, the average EPS estimate is $1.27.
Next year's average estimate for revenue is $3.03 billion. The average EPS estimate is $5.08.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 1,000 members out of 1,074 rating the stock outperform, and 74 members rating it underperform. Among 218 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 205 give Helmerich & Payne a green thumbs-up, and 13 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Helmerich & Payne is outperform, with an average price target of $67.96.
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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.