McMoRan Exploration Beats on Both Top and Bottom Lines

McMoRan Exploration (NYSE: MMR  ) reported earnings on May 6. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), McMoRan Exploration beat expectations on revenues and exceeded expectations on earnings per share.

Compared to the prior-year quarter, revenue dropped significantly. Non-GAAP loss per share expanded. GAAP earnings per share grew.

Gross margins shrank, operating margins dropped, net margins increased.

Revenue details
McMoRan Exploration reported revenue of $81.4 million. The two analysts polled by S&P Capital IQ anticipated a top line of $68.6 million on the same basis. GAAP reported sales were 26% lower than the prior-year quarter's $110.6 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 -$0.10. The four earnings estimates compiled by S&P Capital IQ anticipated -$0.15 per share. Non-GAAP EPS were -$0.10 for Q1 versus -$0.01 per share for the prior-year quarter. GAAP EPS were $0.29 for Q1 versus -$0.03 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 59.9%, 520 basis points worse than the prior-year quarter. Operating margin was -16.1%, much worse than the prior-year quarter. Net margin was 77.3%, much better than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $73.2 million. On the bottom line, the average EPS estimate is -$0.14.

Next year's average estimate for revenue is $337.5 million. The average EPS estimate is -$0.53.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 492 members out of 513 rating the stock outperform, and 21 members rating it underperform. Among 119 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 115 give McMoRan Exploration 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 McMoRan Exploration is outperform, with an average price target of $16.08.

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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 position in any of the stocks mentioned. 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.

Read/Post Comments (2) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On May 09, 2013, at 2:09 PM, zorro6204 wrote:

    Everything you need to know about the fake "Seth" avatar is encapsulated here, discussing next year estimates and star ratings for a company that . . . won't exist next quarter.

  • Report this Comment On May 20, 2013, at 12:27 PM, morenatgas wrote:

    seth must not read the news about mmr.this acquisition has been in the making for

    several months. $14.75 plus unknown price

    of royalty trust. the 20 wells that are in the

    royalty trust have not produced any hydrocarbons.

    only one has been drilled, and they cant get it to

    produce. they walked away from it.

    take a long look at seth before you buy or sell.

    good investing to all.

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