Thursday, February 21, 2013

Newpark Resources Beats on the Top Line

Newpark Resources (NYSE: NR  ) reported earnings on Feb. 14. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Newpark Resources beat expectations on revenues and met expectations on earnings per share.

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

Margins dropped across the board.

Revenue details
Newpark Resources reported revenue of $270.3 million. The eight analysts polled by S&P Capital IQ expected net sales of $252.6 million on the same basis. GAAP reported sales were the same as the prior-year quarter's.

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 $0.17. The eight earnings estimates compiled by S&P Capital IQ averaged $0.17 per share. GAAP EPS of $0.12 for Q4 were 45% lower than the prior-year quarter's $0.22 per share.

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 18.7%, 350 basis points worse than the prior-year quarter. Operating margin was 9.7%, 320 basis points worse than the prior-year quarter. Net margin was 4.1%, 420 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $260.0 million. On the bottom line, the average EPS estimate is $0.18.

Next year's average estimate for revenue is $1.05 billion. The average EPS estimate is $0.77.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 383 members out of 394 rating the stock outperform, and 11 members rating it underperform. Among 116 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 116 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 $9.30.

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