The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Rowan Companies beat expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly and GAAP earnings per share contracted significantly.
Gross margins expanded, operating margins increased, net margins contracted.
Rowan Companies tallied revenue of $353.9 million. The 23 analysts polled by S&P Capital IQ foresaw a top line of $341.8 million on the same basis. GAAP reported sales were 51% higher than the prior-year quarter's $234.7 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 $0.39. The 30 earnings estimates compiled by S&P Capital IQ forecast $0.48 per share. GAAP EPS of $0.22 for Q3 were 86% lower than the prior-year quarter's $1.53 per share. (The prior-year quarter included $1.28 per share in earnings from discontinued operations.)
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 46.8%, 210 basis points better than the prior-year quarter. Operating margin was 16.6%, 300 basis points better than the prior-year quarter. Net margin was 7.8%, 7,480 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $356.9 million. On the bottom line, the average EPS estimate is $0.67.
Next year's average estimate for revenue is $1.38 billion. The average EPS estimate is $2.08.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 574 members out of 605 rating the stock outperform, and 31 members rating it underperform. Among 155 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 146 give Rowan Companies a green thumbs-up, and nine give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Rowan Companies is outperform, with an average price target of $41.23.
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