The 10-second takeaway
For the quarter ended June 30 (Q2), Forest Oil whiffed on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank significantly and GAAP earnings per share shrank to a loss.
Margins shrank across the board.
Forest Oil reported revenue of $135.7 million. The eight analysts polled by S&P Capital IQ anticipated revenue of $160.9 million on the same basis. GAAP reported sales were 27% lower than the prior-year quarter's $186.6 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 $0.06. The 17 earnings estimates compiled by S&P Capital IQ averaged $0.06 per share. GAAP EPS were -$4.44 for Q2 against $0.34 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 72.2%, 660 basis points worse than the prior-year quarter. Operating margin was 34.0%, 3,030 basis points worse than the prior-year quarter. Net margin was -376.7%, 39,760 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $164.0 million. On the bottom line, the average EPS estimate is $0.07.
Next year's average estimate for revenue is $656.2 million. The average EPS estimate is $0.35.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 336 members rating the stock outperform and 15 members rating it underperform. Among 74 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 67 give Forest Oil 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 Forest Oil is outperform, with an average price target of $14.25.
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