The 10-second takeaway
For the quarter ended March 31 (Q1), Resolute Energy beat expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly and GAAP loss per share shrank.
Gross margins contracted, operating margins grew, and net margins grew.
Resolute Energy tallied revenue of $63.5 million. The five analysts polled by S&P Capital IQ looked for revenue of $57.9 million on the same basis. GAAP reported sales were 18% higher than the prior-year quarter's $54.1 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.08. The seven earnings estimates compiled by S&P Capital IQ anticipated $0.08 per share. GAAP EPS were -$0.01 for Q1 versus -$0.32 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 56.9%, 210 basis points worse than the prior-year quarter. Operating margin was 21.8%, 6,880 basis points better than the prior-year quarter. Net margin was -1.2%, 2,980 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $59.2 million. On the bottom line, the average EPS estimate is $0.08.
Next year's average estimate for revenue is $248.8 million. The average EPS estimate is $0.37.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 30 members out of 38 rating the stock outperform, and eight members rating it underperform. Among 10 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), seven give Resolute Energy 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 Resolute Energy is outperform, with an average price target of $16.33.
Over the decades, small-cap stocks like Resolute Energy have produced market-beating returns, provided they're value-priced and have solid businesses. Read about a pair of companies with a lock on their markets in "Too Small to Fail: 2 Small Caps the Government Won't Let Go Broke." Click here for instant access to this free report.
- Add Resolute Energy to My Watchlist.