The Gory Details of Total's Earnings Miss

Total (NYSE: TOT  ) reported earnings on July 27. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended June 30 (Q2), Total missed estimates on revenue and whiffed on earnings per share.

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

Margins dropped across the board.

Revenue details
Total tallied revenue of $56.51 billion. The two analysts polled by S&P Capital IQ wanted to see revenue of $60.70 billion on the same basis. GAAP reported sales were 3.8% lower than the prior-year quarter's $58.75 billion.

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 $0.89. The two earnings estimates compiled by S&P Capital IQ averaged $1.62 per share. GAAP EPS of $0.89 for Q2 were 49% lower than the prior-year quarter's $1.76 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 27.6%, 230 basis points worse than the prior-year quarter. Operating margin was 8.3%, 510 basis points worse than the prior-year quarter. Net margin was 3.6%, 310 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $55.89 billion. On the bottom line, the average EPS estimate is $1.55.

Next year's average estimate for revenue is $251.72 billion. The average EPS estimate is $7.03.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 1,427 members out of 1,454 rating the stock outperform, and 27 members rating it underperform. Among 358 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 352 give Total a green thumbs-up, and six give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Total is outperform, with an average price target of $57.13.

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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. The Motley Fool has no positions in the stocks mentioned above. Motley Fool newsletter services recommend Total. 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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