The 10-second takeaway
For the quarter ended March 31 (Q1), Rosetta Resources missed estimates on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly. Non-GAAP earnings per share grew significantly. GAAP earnings per share expanded significantly.
Margins increased across the board.
Rosetta Resources booked revenue of $178.1 million. The 14 analysts polled by S&P Capital IQ anticipated a top line of $193.6 million on the same basis. GAAP reported sales were 37% higher than the prior-year quarter's $130.4 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 $1.18. The 21 earnings estimates compiled by S&P Capital IQ predicted $0.91 per share. Non-GAAP EPS of $1.18 for Q1 were 84% higher than the prior-year quarter's $0.64 per share. GAAP EPS of $1.01 for Q1 were 140% higher than the prior-year quarter's $0.42 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 82.2%, 40 basis points better than the prior-year quarter. Operating margin was 48.5%, much better than the prior-year quarter. Net margin was 30.0%, much better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $216.7 million. On the bottom line, the average EPS estimate is $0.93.
Next year's average estimate for revenue is $899.6 million. The average EPS estimate is $3.97.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 294 members out of 311 rating the stock outperform, and 17 members rating it underperform. Among 71 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 67 give Rosetta Resources a green thumbs-up, and four 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 $58.95.
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