The 10-second takeaway
For the quarter ended June 30 (Q2), Patterson-UTI Energy beat expectations on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share grew significantly.
Gross margins dropped, operating margins shrank, net margins were steady.
Patterson-UTI Energy booked revenue of $681.1 million. The 13 analysts polled by S&P Capital IQ hoped for a top line of $664.1 million on the same basis. GAAP reported sales were 14% higher than the prior-year quarter's $600.1 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 $0.60. The 21 earnings estimates compiled by S&P Capital IQ anticipated $0.44 per share. GAAP EPS of $0.60 for Q2 were 15% higher than the prior-year quarter's $0.52 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 39.3%, 240 basis points worse than the prior-year quarter. Operating margin was 18.0%, 380 basis points worse than the prior-year quarter. Net margin was 13.6%, about the same as the prior-year quarter.
Next quarter's average estimate for revenue is $681.4 million. On the bottom line, the average EPS estimate is $0.44.
Next year's average estimate for revenue is $2.78 billion. The average EPS estimate is $1.93.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 803 members out of 851 rating the stock outperform, and 48 members rating it underperform. Among 191 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 176 give Patterson-UTI Energy a green thumbs-up, and 15 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Patterson-UTI Energy is outperform, with an average price target of $21.00.
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