After beating estimates last quarter by 2 cents, GeoResources (Nasdaq: GEOI) has set the standard for itself. The company will unveil its latest earnings on Tuesday, November 8. GeoResources is an independent oil and gas company, which is engaged in the acquisition and development of oil and gas reserves.

What analysts say:

  • Buy, sell, or hold?: Analysts strongly back GeoResources, with nine of 12 rating it a buy and the remainder rating it a hold. Analysts don't like GeoResources as much as competitor Resolute Energy overall. While analysts still rate the stock a Moderate buy, they are a little more optimistic about it compared to three months ago.
  • Revenue Forecasts: On average, analysts predict $32.3 million in revenue this quarter. That would represent a rise of 19.8% from the year-ago quarter.
  • Wall Street Earnings Expectations: The average analyst estimate is earnings of 33 cents per share. Estimates range from 30 cents to 39 cents.

What our community says:
CAPS All Stars are solidly behind the stock with 98.9% giving it an "outperform" rating. The community at large concurs with the All Stars with 97.6% awarding it a rating of "outperform." Fools have embraced GeoResources and haven't been shy with their opinions lately, logging 118 posts in the past 30 days. GeoResources has a bullish CAPS rating of five out of five stars that is about on par with the Fool community assessment.

Management:
GeoResources' profit has risen year over year by an average of 86.2% over the past five quarters. Revenue has now gone up for three straight quarters.

Now let's look at how efficient management is at running the business. Traditionally, margins represent the efficiency with which companies capture portions of sales dollars. The following table shows gross, operating, and net margins over the past four quarters.

Quarter

Q2

Q1

Q4

Q3

Gross Margin

72.1%

73.6%

69.2%

70.6%

Operating Margin

46.8%

37.7%

30.1%

39.1%

Net Margin

29.2%

22.9%

20%

29.1%

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