Atwood Oceanics Misses Where It Counts

Before you go, we thought you'd like these...
Before you go close icon

Atwood Oceanics (NYS: ATW) reported earnings on Feb. 1. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q1), Atwood Oceanics met expectations on revenues and missed expectations on earnings per share.

Compared to the prior-year quarter, revenue increased significantly and GAAP earnings per share increased significantly.

Margins dropped across the board.

Revenue details
Atwood Oceanics reported revenue of $184.7 million. The seven analysts polled by S&P Capital IQ expected revenue of $184.4 million. Sales were 26% higher than the prior-year quarter's $146.3 million.

anImage

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.

EPS details
EPS came in at $1.00. The 11 earnings estimates compiled by S&P Capital IQ predicted $1.02 per share. GAAP EPS of $1.00 for Q1 were 23% higher than the prior-year quarter's $0.81 per share.

anImage

Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 57.6%, 250 basis points worse than the prior-year quarter. Operating margin was 41.6%, 180 basis points worse than the prior-year quarter. Net margin was 35.5%, 60 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $169.7 million. On the bottom line, the average EPS estimate is $0.86.

Next year's average estimate for revenue is $743.1 million. The average EPS estimate is $4.04.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 2,344 members out of 2,366 rating the stock outperform, and 22 members rating it underperform. Among 780 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 774 give Atwood Oceanics a green thumbs-up, and six give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Atwood Oceanics is outperform, with an average price target of $48.07.

How did Atwood Oceanics treat you during the oil spike in 2008 and the subsequent bust? More importantly, what are you doing to prepare for the next spike that some experts believe another spike may be just around the corner? Prepare yourself with a well-positioned energy stock we profile in "The Only Energy Stock You'll Ever Need." Click here for instant access to this free report.

At the time this article was published 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 ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Motley Fool newsletter services have recommended buying shares of Atwood Oceanics. 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.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

From Our Partners