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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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is the co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools don't 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.