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Contango Oil & Gas Whiffs on Revenues

Contango Oil & Gas (AMEX: MCF  ) reported earnings on May 9. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q3), Contango Oil & Gas whiffed on revenues and earnings per share.

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

Gross margins shrank, operating margins expanded, net margins increased.

Revenue details
Contango Oil & Gas logged revenue of $41.3 million. The one analyst polled by S&P Capital IQ anticipated net sales of $49.7 million on the same basis. GAAP reported sales were 25% lower than the prior-year quarter's $55.3 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 $0.96. The one earnings estimate compiled by S&P Capital IQ predicted $1.08 per share. GAAP EPS of $0.96 for Q3 were 10% lower than the prior-year quarter's $1.07 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 86.1%, 240 basis points worse than the prior-year quarter. Operating margin was 54.7%, 760 basis points better than the prior-year quarter. Net margin was 35.5%, 510 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $51.0 million. On the bottom line, the average EPS estimate is $1.14.

Next year's average estimate for revenue is $222.7 million. The average EPS estimate is $4.15.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 534 members out of 547 rating the stock outperform, and 14 members rating it underperform. Among 135 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 131 give Contango Oil & Gas a green thumbs-up, and four give it a red thumbs-down.

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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. 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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