Contango Oil & Gas Beats Up on Analysts Yet Again

Contango Oil & Gas (AMEX: MCF  ) reported earnings on Feb. 9. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q2), Contango Oil & Gas crushed expectations on revenues and beat expectations on earnings per share.

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

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

Revenue details
Contango Oil & Gas logged revenue of $53.9 million. The one analyst polled by S&P Capital IQ looked for revenue of $36.7 million on the same basis. GAAP reported sales were 12% higher than the prior-year quarter's $48.2 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Non-GAAP EPS came in at $1.28. The one earnings estimate compiled by S&P Capital IQ averaged $0.66 per share on the same basis. GAAP EPS of $1.27 for Q2 were 69% higher than the prior-year quarter's $0.75 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 87.0%, 120 basis points worse than the prior-year quarter. Operating margin was 57.6%, 2,500 basis points better than the prior-year quarter. Net margin was 36.1%, 1,170 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $35.1 million. On the bottom line, the average EPS estimate is $0.57.

Next year's average estimate for revenue is $222.7 million. The average EPS estimate is $4.15.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 531 members out of 544 rating the stock outperform, and 13 members rating it underperform. Among 164 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 161 give Contango Oil & Gas a green thumbs-up, and three give it a red thumbs-down.

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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 of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool owns shares of Contango Oil & Gas. 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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