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TransGlobe Energy Misses on the Top and Bottom Lines

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TransGlobe Energy (Nasdaq: TGA  ) reported earnings on May 7. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), TransGlobe Energy missed estimates on both revenue and earnings per share.

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

Gross margin dropped, while operating margin and net margin grew.

Revenue details
TransGlobe Energy reported revenue of $77.2 million. The two analysts polled by S&P Capital IQ wanted to see net sales of $79.6 million on the same basis. GAAP-reported sales were 46% higher than the prior-year quarter's $52.9 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 $0.15. The two earnings estimates compiled by S&P Capital IQ anticipated $0.33 per share. GAAP EPS of $0.15 for Q1 were 275% higher than the prior-year quarter's $0.04 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 84.5%, 120 basis points worse than the prior-year quarter. Operating margin was 59.9%, 2,050 basis points better than the prior-year quarter. Net margin was 14.2%, 870 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $82.2 million. On the bottom line, the average EPS estimate is $0.35.

Next year's average estimate for revenue is $448.5 million. The average EPS estimate is $1.60.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 500 members rating the stock outperform and 24 members rating it underperform. Among 106 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 106 give TransGlobe Energy a green thumbs-up, and give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on TransGlobe Energy is outperform, with an average price target of $15.25.

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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. 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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5/31/2016 11:54 AM
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TransGlobe Energy… CAPS Rating: ***