Endeavour International Increases Sales but Misses Estimates on Earnings

Endeavour International (NYSE: END  ) reported earnings on Thursday. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended June 30 (Q2), Endeavour International whiffed on revenues and missed expectations on earnings per share.

Compared to the prior-year quarter, revenue improved significantly and GAAP loss per share increased.

Gross margins grew, operating margins dropped, and net margins contracted.

Revenue details
Endeavour International booked revenue of $23.0 million. The two analysts polled by S&P Capital IQ expected sales of $35.9 million on the same basis. GAAP reported sales were 21% higher than the prior-year quarter's $19.1 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 -$0.91. The seven earnings estimates compiled by S&P Capital IQ forecast -$0.34 per share. GAAP EPS were -$1.31 for Q2 versus -$0.42 per share for the prior-year quarter.

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 75.0%, 830 basis points better than the prior-year quarter. Operating margin was -79.8%, 4,990 basis points worse than the prior-year quarter. Net margin was -220.9%, 13,900 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $108.1 million. On the bottom line, the average EPS estimate is $0.26.

Next year's average estimate for revenue is $296.5 million. The average EPS estimate is -$1.08.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 173 members rating the stock outperform and 11 members rating it underperform. Among 27 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 20 give Endeavour International a green thumbs-up, and seven give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Endeavour International is buy, with an average price target of $15.21.

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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