Rose Rock Midstream
The 10-second takeaway
For the quarter ended March 31 (Q1), Rose Rock Midstream met expectations on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted. Non-GAAP earnings per share grew significantly. GAAP earnings per share grew significantly.
Margins grew across the board.
Rose Rock Midstream notched revenue of $171.2 million. The two analysts polled by S&P Capital IQ predicted net sales of $173.1 million on the same basis. GAAP reported sales were the same as the prior-year quarter's.
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 $0.57. The four earnings estimates compiled by S&P Capital IQ averaged $0.35 per share. Non-GAAP EPS of $0.57 for Q1 were 24% higher than the prior-year quarter's $0.46 per share. GAAP EPS of $0.59 for Q1 were 31% higher than the prior-year quarter's $0.45 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 13.3%, 260 basis points better than the prior-year quarter. Operating margin was 6.0%, 140 basis points better than the prior-year quarter. Net margin was 7.0%, 270 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $248.8 million. On the bottom line, the average EPS estimate is $0.44.
Next year's average estimate for revenue is $857.0 million. The average EPS estimate is $1.70.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 10 members out of 11 rating the stock outperform, and one members rating it underperform. Among three CAPS All-Star picks (recommendations by the highest-ranked CAPS members), three give Rose Rock Midstream a green thumbs-up, and give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Rose Rock Midstream is outperform, with an average price target of $38.00.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.