BP Beats Expectations But Takes A Step Back Anyway

BP (NYSE: BP  ) reported earnings on Feb. 5. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), BP missed estimates on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue dropped slightly and GAAP earnings per share dropped significantly.

Margins contracted across the board.

Revenue details
BP notched revenue of $92.89 billion. The two analysts polled by S&P Capital IQ expected sales of $94.82 billion on the same basis. GAAP reported sales were the same as the prior-year quarter's.

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 $1.25. The seven earnings estimates compiled by S&P Capital IQ averaged $1.09 per share. GAAP EPS of $0.08 for Q4 were 81% lower than the prior-year quarter's $0.42 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 5.8%, 1,160 basis points worse than the prior-year quarter. Operating margin was -1.5%, 1,120 basis points worse than the prior-year quarter. Net margin was 1.7%, 690 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $93.09 billion. On the bottom line, the average EPS estimate is $1.21.

Next year's average estimate for revenue is $339.83 billion. The average EPS estimate is $5.27.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 4,900 members out of 5,224 rating the stock outperform, and 324 members rating it underperform. Among 1,118 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 1,069 give BP a green thumbs-up, and 49 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on BP is outperform, with an average price target of $48.68.

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Seth Jayson owned shares of the following at the time of publication: BP. 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. TMFDisclosureHere


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