Newpark Resources Earnings: Here’s Why Investors are Happy Now

Newpark Resources Inc. (NYSE:NR) delivered a profit and missed Wall Street’s expectations, BUT beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 4.46%.

Newpark Resources Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 40% to $0.12 in the quarter versus EPS of $0.23 in the year-earlier quarter.

Revenue: Rose 2.58% to $270.3 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Newpark Resources Inc. reported adjusted EPS income of $0.12 per share. By that measure, the company missed the mean analyst estimate of $0.16. It beat the average revenue estimate of $252.08 million.

Quoting Management: Paul Howes, Newpark’s President and Chief Executive Officer, stated, “We produced solid operating results in the fourth quarter and are extremely pleased to have reached a significant milestone in 2012, passing the $1 billion annual revenue mark for the first time in the company’s history. For the fourth quarter, our worldwide Fluids revenues increased 8% sequentially and 4% year over year, also posting a quarterly record. Our international operations continued to strengthen, with all regions showing sequential and year-over-year increases in revenues. In North America, our Canadian operations improved seasonally, outpacing that region’s sequential rig count increase. While the U.S. land market continued to be challenging in the fourth quarter, our Fluids revenues benefitted from work on a deepwater well in the Gulf of Mexico and therefore were relatively flat, despite a 5% sequential decline in U.S. rig count.”

Key Stats (on next page)…

Revenue increased 4.12% from $259.6 million in the previous quarter. EPS decreased 40% from $0.20 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.17 to a profit $0.18. For the current year, the average estimate is a profit of $0.67, which is the same with that ninety days ago.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)