Vantage Drilling Whiffs on Revenues

Seth Jayson, The Motley Fool
Updated

Vantage Drilling (AMEX: VTG) reported earnings Monday. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended June 30 (Q2), Vantage Drilling whiffed on revenues and met expectations on earnings per share.

Compared to the prior-year quarter, revenue shrank and GAAP loss per share shrank.


Gross margins grew, operating margins dropped, and net margins expanded.

Revenue details
Vantage Drilling recorded revenue of $105.1 million. The four analysts polled by S&P Capital IQ looked for sales of $124.0 million on the same basis. GAAP reported sales were 4.1% higher than the prior-year quarter's $101 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 -$0.03. The five earnings estimates compiled by S&P Capital IQ forecast -$0.03 per share. GAAP EPS were -$0.03 for Q2 against -$0.14 per share for the prior-year quarter.

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 52.4%, 1,700 basis points better than the prior-year quarter. Operating margin was 30.5%, 140 basis points worse than the prior-year quarter. Net margin was -9.5%, 3,020 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $126.4 million. On the bottom line, the average EPS estimate is -$0.02.

Next year's average estimate for revenue is $517.8 million. The average EPS estimate is -$0.06.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 184 members rating the stock outperform and 12 members rating it underperform. Among 41 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 35 give Vantage Drilling 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 Vantage Drilling is outperform, with an average price target of $1.98.

The article Vantage Drilling Whiffs on Revenues originally appeared on Fool.com.

Seth Jaysonhad 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 positions in the stocks mentioned above. 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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