Oasis Petroleum Increases Sales but Misses Estimates on Earnings

Oasis Petroleum (NYSE: OAS  ) reported earnings on May 7. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), Oasis Petroleum beat expectations on revenues and missed estimates on earnings per share.

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

Margins expanded across the board.

Revenue details
Oasis Petroleum chalked up revenue of $138.6 million. The 14 analysts polled by S&P Capital IQ anticipated sales of $125.7 million on the same basis. GAAP reported sales were much higher than the prior-year quarter's $58.7 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 $0.30. The 20 earnings estimates compiled by S&P Capital IQ predicted $0.31 per share. GAAP EPS were $0.18 for Q1 against -$0.07 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 81.1%, 160 basis points better than the prior-year quarter. Operating margin was 42.0%, 5,240 basis points better than the prior-year quarter. Net margin was 11.9%, 2,360 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $142.7 million. On the bottom line, the average EPS estimate is $0.35.

Next year's average estimate for revenue is $632.5 million. The average EPS estimate is $1.66.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 121 members out of 124 rating the stock outperform, and three members rating it underperform. Among 25 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 25 give Oasis Petroleum 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 Oasis Petroleum is outperform, with an average price target of $37.06.

Is Oasis Petroleum the right energy stock for you? Read about a handful of timely, profit-producing plays on expensive crude in "3 Stocks for $100 Oil." Get instant access to this free report.

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.


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.

DocumentId: 1882635, ~/Articles/ArticleHandler.aspx, 4/16/2014 6:49:43 PM

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