Parker Drilling Misses on Revenues but Beats on EPS

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Parker Drilling (NYS: PKD) reported earnings yesterday. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), Parker Drilling missed estimates on revenues and beat expectations on earnings per share.

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


Margins improved across the board.

Revenue details
Parker Drilling notched revenue of $176.6 million. The four analysts polled by S&P Capital IQ expected a top line of $188.9 million on the same basis. GAAP reported sales were 13% higher than the prior-year quarter's $156.2 million.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.22. The six earnings estimates compiled by S&P Capital IQ anticipated $0.17 per share. GAAP EPS of $0.22 for Q1 were 450% higher than the prior-year quarter's $0.04 per share.

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Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 46.2%, 1,490 basis points better than the prior-year quarter. Operating margin was 27.5%, 1,830 basis points better than the prior-year quarter. Net margin was 14.9%, 1,180 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $195.9 million. On the bottom line, the average EPS estimate is $0.18.

Next year's average estimate for revenue is $806.5 million. The average EPS estimate is $0.73.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 657 members rating the stock outperform and 25 members rating it underperform. Among 112 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 107 give Parker Drilling a green thumbs-up, and five give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Parker Drilling is outperform, with an average price target of $8.20.

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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. 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.

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