The 10-second takeaway
For the quarter ended June 30 (Q2), Rosetta Resources crushed expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly and GAAP earnings per share expanded significantly.
Margins increased across the board.
Rosetta Resources reported revenue of $198.0 million. The eight analysts polled by S&P Capital IQ expected to see sales of $128.2 million on the same basis. GAAP reported sales were 77% higher than the prior-year quarter's $111.6 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 $0.58. The 19 earnings estimates compiled by S&P Capital IQ forecast $0.58 per share. GAAP EPS of $1.46 for Q2 were 204% higher than the prior-year quarter's $0.48 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 87.0%, 210 basis points better than the prior-year quarter. Operating margin was 64.2%, 2,380 basis points better than the prior-year quarter. Net margin was 38.9%, 1,610 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $146.4 million. On the bottom line, the average EPS estimate is $0.69.
Next year's average estimate for revenue is $569.3 million. The average EPS estimate is $2.78.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 292 members out of 311 rating the stock outperform, and 19 members rating it underperform. Among 72 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 69 give Rosetta Resources a green thumbs-up, and three 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 $56.63.
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