Can Gran Tierra Energy Meet These Numbers?

Gran Tierra Energy (AMEX: GTE) is expected to report Q2 earnings around Aug. 7. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Gran Tierra Energy's revenues will drop 12.7% and EPS will shrink 0.0%.

The average estimate for revenue is $141.6 million. On the bottom line, the average EPS estimate is $0.12.

Revenue details
Last quarter, Gran Tierra Energy booked revenue of $156.0 million. GAAP reported sales were 27% higher than the prior-year quarter's $122.3 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, EPS came in at $0.00. GAAP EPS contracted to zero from the prior-year quarter's $0.05.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 84.2%, 240 basis points worse than the prior-year quarter. Operating margin was 48.1%, 400 basis points better than the prior-year quarter. Net margin was -0.2%, 1,140 basis points worse than the prior-year quarter.

Looking ahead
The full year's average estimate for revenue is $638.9 million. The average EPS estimate is $0.34.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 354 members out of 377 rating the stock outperform, and 23 members rating it underperform. Among 56 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 47 give Gran Tierra Energy a green thumbs-up, and nine give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Gran Tierra Energy is outperform, with an average price target of $8.39.

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. 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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  • Report this Comment On August 06, 2012, at 1:34 PM, peacefulvalley59 wrote:

    This quarter's revenue and earnings were negatively affected by pipeline disruptions for which the company has no control. Importantly, this is ultimately a timing issue as the oil reserves don't go away just because of temporary production curtailment. Oil prices also declined during the quarter (have since firmed up somewhat in July). Overall, and from a long-term perspective, this debt-free company appears to be on track to continue to build value. Appears to offer some upside given current MEV/EBITDA ratio, but much is dependent upon future direction of oil prices.

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