The 10-second takeaway
For the quarter ended March 31 (Q1), Forest Oil whiffed on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted significantly. Non-GAAP earnings per share dropped significantly. GAAP loss per share increased.
Gross margins grew, operating margins contracted, net margins shrank.
Forest Oil logged revenue of $118.2 million. The five analysts polled by S&P Capital IQ expected net sales of $131.4 million on the same basis. GAAP reported sales were 26% lower than the prior-year quarter's $158.9 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 $0.03. The 18 earnings estimates compiled by S&P Capital IQ predicted $0.02 per share. Non-GAAP EPS of $0.03 for Q1 were 73% lower than the prior-year quarter's $0.11 per share. GAAP EPS were -$0.59 for Q1 against -$0.29 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 77.4%, 430 basis points better than the prior-year quarter. Operating margin was -26.6%, much worse than the prior-year quarter. Net margin was -57.5%, much worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $123.7 million. On the bottom line, the average EPS estimate is $0.04.
Next year's average estimate for revenue is $519.1 million. The average EPS estimate is $0.22.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 323 members out of 341 rating the stock outperform, and 18 members rating it underperform. Among 73 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 63 give Forest Oil a green thumbs-up, and 10 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 $7.72.
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