Plains Exploration & Production Earnings Preview

Plains Exploration & Production (NYSE: PXP  ) will try to beat its earnings estimates for the third consecutive quarter. The company will unveil its latest earnings on Thursday, Feb.23. Plains Exploration & Production is an independent oil and gas company that is engaged in acquiring, developing, exploiting, exploring, and producing oil and gas properties in the United States.

What analysts say:

  • Buy, sell, or hold?: Analysts strongly back Plains Exploration & Production, with 12 out of 14 rating it a buy and the remainder rating it a hold. Analysts don't like Plains Exploration & Production as much as competitor Berry Petroleum overall. Analysts still rate the stock a moderate buy, but they are a bit more wary about it compared to three months ago.
  • Revenue forecasts: On average, analysts predict $495.6 million in revenue this quarter. That would represent a rise of 21.4% from the year-ago quarter.
  • Wall Street earnings expectations: The average analyst estimate is earnings of $0.43 per share. Estimates range from $0.16 to $0.55.

What our community says:
CAPS All-Stars are solidly backing the stock, with 96.4% giving it an outperform rating. Most of the community concurs with the All-Stars, with 96.4% granting it a rating of outperform. Even with a robust four out of five stars, Plains Exploration & Production's CAPS rating falls a little short of the community's upbeat outlook.

Management:
The company increased its gross margin by 6.4 percentage points in the last quarter. Revenue rose 29.4% while cost of sales rose 2.6% to $122.4 million from a year earlier.

Now let's get some insight into how efficient management is at running the business. Margins illustrate how efficiently a company captures portions of sales dollars. The company's operating margins have been increasing year over year for the last three quarters. Operating margins reflect the total sales revenue that the company retains after costs. Here are Plains Exploration & Production's reported margins for the last four quarters:

Quarter

Q3

Q2

Q1

Q4

Gross Margin

75.6%

72.2%

71.6%

70.2%

Operating Margin

33.6%

36.2%

31.1%

22.7%

Net Margin

(17.6%)

24.3%

16.5%

(4.8%)

We can help you keep tabs on your companies with My Watchlist, our free, personalized service. Add Plains Exploration & Production now.

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.

Earnings estimates provided by Zacks.

Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 1783960, ~/Articles/ArticleHandler.aspx, 8/28/2014 1:10:24 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement