Contango Oil & Gas Goes Red

Contango Oil & Gas (AMEX: MCF) reported earnings on Nov. 9. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Sep. 30 (Q1), Contango Oil & Gas whiffed on revenues and missed expectations on earnings per share.

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

Margins dropped across the board.

Revenue details
Contango Oil & Gas reported revenue of $29.8 million. The one analyst polled by S&P Capital IQ expected to see revenue of $40.7 million on the same basis. GAAP reported sales were 33% lower than the prior-year quarter's $44.2 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 -$1.80. The one earnings estimate compiled by S&P Capital IQ anticipated $0.77 per share. GAAP EPS were -$1.80 for Q1 versus $0.95 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 78.3%, 840 basis points worse than the prior-year quarter. Operating margin was -141.9%, 19,630 basis points worse than the prior-year quarter. Net margin was -92.6%, 12,630 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $41.4 million. On the bottom line, the average EPS estimate is $0.80.

Next year's average estimate for revenue is $167.1 million. The average EPS estimate is $3.28.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 517 members out of 533 rating the stock outperform, and 16 members rating it underperform. Among 126 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 122 give Contango Oil & Gas a green thumbs-up, and four give it a red thumbs-down.

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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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