Natural Resource Partners (NYSE: NRP ) reported earnings on Aug. 6. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended June 30 (Q2), Natural Resource Partners beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped slightly and GAAP earnings per share dropped.
Margins contracted across the board.
Revenue details
Natural Resource Partners booked revenue of $90.7 million. The four analysts polled by S&P Capital IQ wanted to see a top line of $84.9 million on the same basis. GAAP reported sales were 0.8% lower than the prior-year quarter's $91.4 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 $0.46. The five earnings estimates compiled by S&P Capital IQ predicted $0.39 per share. GAAP EPS of $0.46 for Q2 were 4.2% lower than the prior-year quarter's $0.48 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 94.5%, 480 basis points worse than the prior-year quarter. Operating margin was 70.0%, 90 basis points worse than the prior-year quarter. Net margin was 55.1%, 220 basis points worse than the prior-year quarter.
Looking ahead
Next quarter's average estimate for revenue is $88.2 million. On the bottom line, the average EPS estimate is $0.43.
Next year's average estimate for revenue is $354.1 million. The average EPS estimate is $1.72.
Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 361 members out of 389 rating the stock outperform, and 28 members rating it underperform. Among 118 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 107 give Natural Resource Partners a green thumbs-up, and 11 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Natural Resource Partners is outperform, with an average price target of $30.00.
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Report this Comment On August 07, 2012, at 2:15 PM, MockingJay2011 wrote:
If NRP units were to increase to the average price target of $30, that would be a 1-yr total return of 64% from the current unit price of $19.65. That seems unlikely, as it implies the unit yield would have fallen from 11.2% today to 7.3%.
Still, a total return of 33%-41% is possible if the unit's yield were to fall to 8.5%-9.0%.
Report this Comment On August 07, 2012, at 2:32 PM, JJButlerISA wrote:
Coal production on their land was basically unchanged, with coal revenue down 12%. That is a testament to their asset strength. I also like where their ‘other’ revenue business is going. I just wish cash flow covered the safe distribution. http://tinyurl.com/ckgsodx
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