Denbury Resources Crushes Earnings Estimates

Denbury Resources (NYSE: DNR  ) reported earnings on Feb. 23. Here are the numbers you need to know.

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

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

Margins increased across the board.

Revenue details
Denbury Resources tallied revenue of $617.3 million. The six analysts polled by S&P Capital IQ expected to see a top line of $572.2 million on the same basis. GAAP reported sales were 19% higher than the prior-year quarter's $519.0 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 $0.45. The 17 earnings estimates compiled by S&P Capital IQ forecast $0.32 per share on the same basis. GAAP EPS of $0.13 for Q4 were much higher than the prior-year quarter's $0.02 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 78.4%, 1,110 basis points better than the prior-year quarter. Operating margin was 22.4%, 600 basis points better than the prior-year quarter. Net margin was 8.5%, 650 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $549.3 million. On the bottom line, the average EPS estimate is $0.31.

Next year's average estimate for revenue is $2.36 billion. The average EPS estimate is $1.39.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 1,024 members rating the stock outperform and 22 members rating it underperform. Among 320 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 317 give Denbury Resources a green thumbs-up, and three give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Denbury Resources is outperform, with an average price target of $24.22.

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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 Denbury Resources. 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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