The 10-second takeaway
For the quarter ended June 30 (Q2), EXCO Resources whiffed on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted significantly and GAAP earnings per share contracted to a loss. The non-GAAP profit was a surprise, as analysts had predicted a loss.
Margins dropped across the board.
EXCO Resources chalked up revenue of $118.0 million. The five analysts polled by S&P Capital IQ looked for revenue of $175.2 million on the same basis. GAAP reported sales were 43% lower than the prior-year quarter's $206.8 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 $0.05. The nine earnings estimates compiled by S&P Capital IQ forecast -$0.01 per share. GAAP EPS were -$2.32 for Q2 against $0.38 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 56.3%, 2,110 basis points worse than the prior-year quarter. Operating margin was -403.5%, 44,810 basis points worse than the prior-year quarter. Net margin was -420.8%, 46,060 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $175.9 million. On the bottom line, the average EPS estimate is $0.03.
Next year's average estimate for revenue is $747.4 million. The average EPS estimate is $0.12.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 487 members out of 512 rating the stock outperform, and 25 members rating it underperform. Among 89 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 79 give EXCO Resources a green thumbs-up, and 10 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on EXCO Resources is hold, with an average price target of $7.09.
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