The 10-second takeaway
For the quarter ended June 30 (Q2), Newpark Resources beat slightly on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue increased. GAAP earnings per share grew.
Gross margins increased, operating margins shrank, net margins dropped.
Newpark Resources booked revenue of $276.6 million. The nine analysts polled by S&P Capital IQ predicted a top line of $272.1 million on the same basis. GAAP reported sales were 13% higher than the prior-year quarter's $245.8 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 $0.17. The 10 earnings estimates compiled by S&P Capital IQ predicted $0.19 per share. GAAP EPS of $0.17 for Q2 were 13% higher than the prior-year quarter's $0.15 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 18.6%, 60 basis points better than the prior-year quarter. Operating margin was 9.7%, 40 basis points worse than the prior-year quarter. Net margin was 5.7%, 20 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $287.0 million. On the bottom line, the average EPS estimate is $0.22.
Next year's average estimate for revenue is $1.13 billion. The average EPS estimate is $0.83.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 374 members out of 385 rating the stock outperform, and 11 members rating it underperform. Among 105 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 105 give Newpark Resources 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 Newpark Resources is hold, with an average price target of $11.21.
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