RigNet Meets on the Top Line but Misses Where It Counts
RigNet (NAS: RNET) reported earnings on May 9. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended March 31 (Q1), RigNet met expectations on revenue and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly and GAAP earnings per share grew.
Margins increased across the board.
RigNet chalked up revenue of $31.2 million. The one analyst polled by S&P Capital IQ foresaw a top line of $30.9 million on the same basis. GAAP-reported sales were 28% higher than the prior-year quarter's $24.5 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.14. The two earnings estimates compiled by S&P Capital IQ predicted $0.18 per share. GAAP EPS of $0.14 for Q1 were much higher than the prior-year quarter's $0 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 54.6%, 30 basis points better than the prior-year quarter. Operating margin was 15.7%, 320 basis points better than the prior-year quarter. Net margin was 7.7%, 780 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $31.6 million. On the bottom line, the average EPS estimate is $0.20.
Next year's average estimate for revenue is $128.5 million. The average EPS estimate is $0.83.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on RigNet is buy, with an average price target of $20.67.
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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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