How the Wheels Came Off Rowan Cos.' Bus
Rowan Cos. (NYS: RDC) filed its 10-K on Feb. 28. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Rowan beat expectations on revenues and whiffed on earnings per share.
Compared to the prior-year quarter, revenue shrank significantly and GAAP earnings per share dropped significantly.
Margins dropped across the board.
Rowan Companies booked revenue of $275.1 million. The 21 analysts polled by S&P Capital IQ expected revenue of $267.9 million on the same basis. GAAP reported sales were 32% higher than the prior-year quarter's $208.5 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.27. The 29 earnings estimates compiled by S&P Capital IQ predicted $0.31 per share on the same basis. GAAP EPS of $0.35 for Q4 were 22% lower 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 40.9%, 1,110 basis points worse than the prior-year quarter. Operating margin was 12.7%, 1,090 basis points worse than the prior-year quarter. Net margin was 16.4%, 1,110 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $320.4 million. On the bottom line, the average EPS estimate is $0.47.
Next year's average estimate for revenue is $1.39 billion. The average EPS estimate is $2.89.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 595 members out of 625 rating the stock outperform, and 30 members rating it underperform. Among 206 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 199 give Rowan a green thumbs-up, and seven give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Rowan is outperform, with an average price target of $43.12.
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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.