Rowan Companies Beats on Both Top and Bottom Lines

Seth Jayson, The Motley Fool
Updated

Rowan Companies (NYS: RDC) reported earnings on May 1. Here are the numbers you need to know.

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

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


Margins expanded across the board.

Revenue details
 Rowan Companies notched revenue of $394.2 million. The 19 analysts polled by S&P Capital IQ expected a top line of $386.0 million on the same basis. GAAP reported sales were 18% higher than the prior-year quarter's $333.5 million.

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 $0.55. The 32 earnings estimates compiled by S&P Capital IQ anticipated $0.52 per share. GAAP EPS of $0.55 for Q1 were 38% higher than the prior-year quarter's $0.40 per share. (The prior-year quarter included -$0.05 per share in earnings from discontinued operations.)

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 46.9%, 150 basis points better than the prior-year quarter. Operating margin was 23.0%, 360 basis points better than the prior-year quarter. Net margin was 17.3%, 250 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
 Next quarter's average estimate for revenue is $398.3 million. On the bottom line, the average EPS estimate is $0.64.

Next year's average estimate for revenue is $1.55 billion. The average EPS estimate is $2.20.

Investor sentiment
 The stock has a three-star rating (out of five) at Motley Fool CAPS, with 572 members out of 603 rating the stock outperform, and 31 members rating it underperform. Among 148 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 139 give Rowan Companies a green thumbs-up, and nine give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Rowan Companies is outperform, with an average price target of $38.92.

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The article Rowan Companies Beats on Both Top and Bottom Lines originally appeared on Fool.com.

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. The Motley Fool has no position in any of the stocks mentioned. 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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