The 10-second takeaway
For the quarter ended Sep. 30 (Q4), Atwood Oceanics beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly and GAAP earnings per share grew significantly.
Margins contracted across the board.
Atwood Oceanics reported revenue of $252.5 million. The 13 analysts polled by S&P Capital IQ predicted revenue of $225.6 million on the same basis. GAAP reported sales were 42% higher than the prior-year quarter's $177.6 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 $1.45. The 17 earnings estimates compiled by S&P Capital IQ predicted $1.24 per share. GAAP EPS of $1.45 for Q4 were 31% higher than the prior-year quarter's $1.11 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 59.6%, 560 basis points worse than the prior-year quarter. Operating margin was 45.4%, 540 basis points worse than the prior-year quarter. Net margin was 37.8%, 330 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $231.1 million. On the bottom line, the average EPS estimate is $1.10.
Next year's average estimate for revenue is $999.3 million. The average EPS estimate is $5.14.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 2,355 members out of 2,378 rating the stock outperform, and 23 members rating it underperform. Among 593 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 587 give Atwood Oceanics a green thumbs-up, and six give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Atwood Oceanics is outperform, with an average price target of $53.63.
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