Capital Product Partners Goes Negative

Capital Product Partners (Nasdaq: CPLP  ) reported earnings on July 31. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended June 30 (Q2), Capital Product Partners met expectations on revenues and missed expectations on earnings per share.

Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share dropped to a loss.

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

Revenue details
Capital Product Partners notched revenue of $37.8 million. The five analysts polled by S&P Capital IQ foresaw a top line of $37.9 million on the same basis. GAAP reported sales were 36% higher than the prior-year quarter's $27.9 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 -$0.03. The four earnings estimates compiled by S&P Capital IQ predicted $0.03 per share. GAAP EPS were -$0.01 for Q2 compared to $0.37 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 69.0%, 120 basis points better than the prior-year quarter. Operating margin was 31.2%, 550 basis points better than the prior-year quarter. Net margin was 8.9%, 4,550 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $38.8 million. On the bottom line, the average EPS estimate is $0.06.

Next year's average estimate for revenue is $154.6 million. The average EPS estimate is $0.14.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 163 members out of 169 rating the stock outperform, and six members rating it underperform. Among 43 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 41 give Capital Product Partners a green thumbs-up, and two give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Capital Product Partners is outperform, with an average price target of $9.50.

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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 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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