The 10-second takeaway
For the quarter ended March 31 (Q1), Rosetta Resources whiffed on revenues and whiffed on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share grew significantly.
Gross margins shrank, operating margins improved, net margins expanded.
Rosetta Resources reported revenue of $114.5 million. The seven analysts polled by S&P Capital IQ expected to see revenue of $139.7 million on the same basis. GAAP reported sales were 18% higher than the prior-year quarter's $97.1 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 $0.64. The 20 earnings estimates compiled by S&P Capital IQ averaged $0.77 per share. GAAP EPS of $0.42 for Q1 were 100% higher than the prior-year quarter's $0.21 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 79.3%, 50 basis points worse than the prior-year quarter. Operating margin was 35.4%, 1,160 basis points better than the prior-year quarter. Net margin was 19.5%, 820 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $150.4 million. On the bottom line, the average EPS estimate is $0.84.
Next year's average estimate for revenue is $660.5 million. The average EPS estimate is $3.78.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 284 members out of 303 rating the stock outperform, and 19 members rating it underperform. Among 79 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 75 give Rosetta Resources a green thumbs-up, and four give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Rosetta Resources is outperform, with an average price target of $59.76.
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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.