Denbury Resources Beats on EPS but GAAP Results Lag

Denbury Resources (NYSE: DNR  ) reported earnings on Aug. 2. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended June 30 (Q2), Denbury Resources met expectations on revenue and beat expectations on earnings per share.

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

Gross margins increased, operating margins shrank, and net margins dropped.

Revenue details
Denbury Resources tallied revenue of $601.8 million. The four analysts polled by S&P Capital IQ expected to see sales of $608.5 million on the same basis. GAAP reported sales were 0.9% higher than the prior-year quarter's $596.4 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 $0.36. The 15 earnings estimates compiled by S&P Capital IQ predicted $0.34 per share. GAAP EPS of $0.54 for Q2 were 16% lower than the prior-year quarter's $0.64 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 79.1%, 790 basis points better than the prior-year quarter. Operating margin was 63.9%, 1,380 basis points worse than the prior-year quarter. Net margin was 35.2%, 830 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $633.1 million. On the bottom line, the average EPS estimate is $0.34.

Next year's average estimate for revenue is $2.53 billion. The average EPS estimate is $1.43.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 1,088 members out of 1,109 rating the stock outperform, and 21 members rating it underperform. Among 239 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 238 give Denbury Resources a green thumbs-up, and one gives it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Denbury Resources is outperform, with an average price target of $24.66.

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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 owns shares of Denbury Resources. 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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