The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Callon Petroleum missed estimates on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue shrank significantly and GAAP earnings per share contracted to a loss.
Margins dropped across the board.
Callon Petroleum chalked up revenue of $27.4 million. The four analysts polled by S&P Capital IQ expected to see revenue of $29.5 million on the same basis. GAAP reported sales were 18% lower than the prior-year quarter's $33.6 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 $0.01. The seven earnings estimates compiled by S&P Capital IQ predicted $0.02 per share. GAAP EPS were -$0.03 for Q3 compared to $0.21 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 78.6%, 360 basis points worse than the prior-year quarter. Operating margin was 9.4%, 2,200 basis points worse than the prior-year quarter. Net margin was -4.0%, 2,910 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $34.5 million. On the bottom line, the average EPS estimate is $0.06.
Next year's average estimate for revenue is $118.1 million. The average EPS estimate is $0.15.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 501 members out of 527 rating the stock outperform, and 26 members rating it underperform. Among 63 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 59 give Callon Petroleum a green thumbs-up, and four give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Callon Petroleum is outperform, with an average price target of $7.70.
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