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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