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Can InterOil Beat These Numbers?

InterOil (NYSE: IOC  ) is expected to report Q2 earnings on Aug. 13. 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 InterOil's revenues will contract -7.6% and EPS will shrink to a loss.

The average estimate for revenue is $280.6 million. On the bottom line, the average EPS estimate is -$0.11.

Revenue details
Last quarter, InterOil reported revenue of $338.2 million. GAAP reported sales were 39% higher than the prior-year quarter's $243.4 million.

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

EPS details
Last quarter, EPS came in at $0.19. GAAP EPS of $0.19 for Q1 were much higher than the prior-year quarter's $0.01 per share.

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 10.8%, 580 basis points worse than the prior-year quarter. Operating margin was 3.7%, 100 basis points worse than the prior-year quarter. Net margin was 2.8%, 250 basis points better than the prior-year quarter.

Looking ahead
The full year's average estimate for revenue is $1.09 billion. The average EPS estimate is -$0.26.

Investor sentiment
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 268 members rating the stock outperform, and 326 members rating it underperform. Among 197 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 58 give InterOil a green thumbs-up, and 139 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on InterOil is outperform, with an average price target of $80.00.

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.

Read/Post Comments (3) | Recommend This Article (2)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On August 08, 2012, at 3:13 PM, kencooksam wrote:

    Shame on you Seth you need to take time to understand the IOC story. IOC is not an earnings story but a monetization strategy and story. They own at least 9 Trillion mcf of NG, and for almost a year 3 Investment bankers have been working to get a sell dowm. Shell Oil per local PNG newspaper bribed the former DPE director William Duma to deliver the IOC licenses to them and he is no longer today director of that dept. The stock is up over 70% year to date because of the sell down and improving PNG govt situation.More drilling news. more monetization news and more ONG govt news on the earning CC. You shouold listen and then write a retraction. Shame on Motley Fool for letting you publish this nonsense.

  • Report this Comment On August 08, 2012, at 4:36 PM, stratacapital wrote:

    Seth....Motley Fool used to take the time to do some actual research. InterOil is not about the earnings from their small refinery and network of gas stations. The reason that InterOil is steadily climbing is because the company's gas assets are worth $20B-$30B+ and the company's market cap is still under $5B. This is just like Cove Energy, which was sold to PTT after a protracted bidding war with Shell. Cove increased 400% in a year. InterOil's assets are DRAMATICALLY more valuable than Cove's. I would not be surprised to see Shell attempt to buy InterOil and a bidding war break out between Exxon and Shell. The final acquisition price could easily be $250-$300+/share.

    Here are a few links to read, if you want to understand what is happening with InterOil.

  • Report this Comment On August 08, 2012, at 4:56 PM, lovesstocks2 wrote:

    lets do this in plain english.

    Forget the numbers, they are meaningless. The history that matters here is people.

    Shell has now come to the bargaining table and that means that IOC has gained traction as before Shell and others were trying to take the project from IOC anyway they could.

    If the company can shove an acceptable capital plan through the government and deliver, then big gains are in store, if through corruption or ineptness they lose the project, then shareholders lose everything. Anything in between may not be an adequate return.

    Measuring that with numbers is crazy

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