The 10-second takeaway
For the quarter ended March 31 (Q2), Atwood Oceanics beat on both revenue and earnings per share.
Compared to the prior-year quarter, revenue grew, while GAAP earnings per share shrank significantly.
Margins shrank across the board.
Atwood Oceanics booked revenue of $171.6 million. The six analysts polled by S&P Capital IQ expected to see a top line of $168.3 million on the same basis. GAAP-reported sales were 7.9% higher than the prior-year quarter's $159.1 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 $0.90. The 10 earnings estimates compiled by S&P Capital IQ anticipated $0.77 per share. GAAP EPS of $0.90 for Q2 were 17% lower than the prior-year quarter's $1.08 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 53.8%, 1,450 basis points worse than the prior-year quarter. Operating margin was 37.6%, 1,950 basis points worse than the prior-year quarter. Net margin was 34.6%, 980 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $169.7 million. On the bottom line, the average EPS estimate is $0.83.
Next year's average estimate for revenue is $746.3 million. The average EPS estimate is $3.83.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 2,339 members rating the stock outperform and 22 members rating it underperform. Among 634 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 628 give Atwood Oceanics a green thumbs-up, and six give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Atwood Oceanics is outperform, with an average price target of $51.03.
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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. Motley Fool newsletter services have recommended buying shares of Atwood Oceanics. 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.