The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Forest Oil missed estimates on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped and GAAP earnings per share shrank to a loss.
Margins dropped across the board.
Forest Oil reported revenue of $156.1 million. The nine analysts polled by S&P Capital IQ expected a top line of $168.4 million on the same basis. GAAP reported sales were 10% lower than the prior-year quarter's $174.0 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 $0.10. The 17 earnings estimates compiled by S&P Capital IQ predicted $0.08 per share. GAAP EPS were -$3.97 for Q3 compared to $0.72 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 74.5%, 560 basis points worse than the prior-year quarter. Operating margin was -215.0%, 29,040 basis points worse than the prior-year quarter. Net margin was -293.8%, 34,140 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $173.5 million. On the bottom line, the average EPS estimate is $0.11.
Next year's average estimate for revenue is $661.6 million. The average EPS estimate is $0.37.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 339 members out of 356 rating the stock outperform, and 17 members rating it underperform. Among 81 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 73 give Forest Oil a green thumbs-up, and eight give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Forest Oil is hold, with an average price target of $9.14.
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