Newpark Resources Increases Sales but Misses Revenue Estimate

Seth Jayson, The Motley Fool
Updated

Newpark Resources (NYS: NR) reported earnings on April 26. Here are the numbers you need to know.

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

Compared with the prior-year quarter, revenue grew significantly and GAAP earnings per share didn't move.


Margins contracted across the board.

Revenue details
Newpark Resources reported revenue of $262.3 million. The 10 analysts polled by S&P Capital IQ expected a top line of $269.6 million on the same basis. GAAP reported sales were 29% higher than the prior-year quarter's $202.7 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 $0.16. The 10 earnings estimates compiled by S&P Capital IQ predicted $0.21 per share. GAAP EPS of $0.16 were the same as the prior-year quarter.

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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 18.1%, 340 basis points worse than the prior-year quarter. Operating margin was 10.0%, 400 basis points worse than the prior-year quarter. Net margin was 6.0%, 180 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $269.7 million. On the bottom line, the average EPS estimate is $0.22.

Next year's average estimate for revenue is $1.11 billion. The average EPS estimate is $0.90.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 376 members out of 387 rating the stock outperform, and 11 members rating it underperform. Among 101 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 101 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 outperform, with an average price target of $11.85.

At the time thisarticle was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings. He is the 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 don't 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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