The 10-second takeaway
For the quarter ended Sep. 30 (Q3), RigNet 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 dropped significantly.
Margins dropped across the board.
RigNet logged revenue of $47.9 million. The two analysts polled by S&P Capital IQ predicted revenue of $46.6 million on the same basis. GAAP reported sales were 66% higher than the prior-year quarter's $28.9 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 $0.20. The four earnings estimates compiled by S&P Capital IQ averaged $0.21 per share. GAAP EPS of $0.19 for Q3 were 41% lower than the prior-year quarter's $0.32 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 48.2%, 690 basis points worse than the prior-year quarter. Operating margin was 14.5%, 310 basis points worse than the prior-year quarter. Net margin was 6.6%, 1,230 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $48.5 million. On the bottom line, the average EPS estimate is $0.23.
Next year's average estimate for revenue is $151.9 million. The average EPS estimate is $0.77.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on RigNet is buy, with an average price target of $21.33.
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