Magnum Hunter Resources Increases Sales but Misses Revenue Estimate

Magnum Hunter Resources (NYSE: MHR  ) reported earnings on May 3. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), Magnum Hunter Resources missed estimates on revenues and exceeded expectations on earnings per share.

Compared with the prior-year quarter, revenue improved significantly and GAAP loss per share expanded.

Margins grew across the board.

Revenue details
Magnum Hunter Resources tallied revenue of $57.2 million. The seven analysts polled by S&P Capital IQ foresaw net sales of $59.1 million on the same basis. GAAP reported sales were much higher than the prior-year quarter's $15.3 million.

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

EPS details
EPS came in at -$0.01. The 12 earnings estimates compiled by S&P Capital IQ forecast -$0.03 per share. GAAP EPS were -$0.13 for Q1 versus -$0.12 per share for the prior-year quarter.

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 68.9%, 180 basis points better than the prior-year quarter. Operating margin was -20.2%, 700 basis points better than the prior-year quarter. Net margin was -21.8%, 2,190 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $69.8 million. On the bottom line, the average EPS estimate is -$0.03.

Next year's average estimate for revenue is $293.9 million. The average EPS estimate is -$0.03.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 156 members out of 168 rating the stock outperform, and 12 members rating it underperform. Among 28 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 20 give Magnum Hunter Resources a green thumbs-up, and eight give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Magnum Hunter Resources is buy, with an average price target of $8.54.

Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings. He is the co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools don't 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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