The 10-second takeaway
For the quarter ended March 31 (Q1), Rowan Companies beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly. GAAP earnings per share increased significantly.
Margins expanded across the board.
Rowan Companies notched revenue of $394.2 million. The 19 analysts polled by S&P Capital IQ expected a top line of $386.0 million on the same basis. GAAP reported sales were 18% higher than the prior-year quarter's $333.5 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 $0.55. The 32 earnings estimates compiled by S&P Capital IQ anticipated $0.52 per share. GAAP EPS of $0.55 for Q1 were 38% higher than the prior-year quarter's $0.40 per share. (The prior-year quarter included -$0.05 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 46.9%, 150 basis points better than the prior-year quarter. Operating margin was 23.0%, 360 basis points better than the prior-year quarter. Net margin was 17.3%, 250 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $398.3 million. On the bottom line, the average EPS estimate is $0.64.
Next year's average estimate for revenue is $1.55 billion. The average EPS estimate is $2.20.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 572 members out of 603 rating the stock outperform, and 31 members rating it underperform. Among 148 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 139 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 $38.92.
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