QR Energy Crushes Earnings Estimates

QR Energy (NYSE: QRE  ) reported earnings on May 8. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), QR Energy missed estimates on revenues and crushed expectations on earnings per share.

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

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

Revenue details
QR Energy reported revenue of $104.9 million. The 11 analysts polled by S&P Capital IQ predicted revenue of $109.4 million on the same basis. GAAP reported sales were 59% higher than the prior-year quarter's $65.8 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 $0.80. The 12 earnings estimates compiled by S&P Capital IQ forecast $0.27 per share. Non-GAAP EPS of $0.80 for Q1 were 23% lower than the prior-year quarter's $1.04 per share. GAAP EPS were -$0.33 for Q1 versus -$0.49 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 59.2%, 580 basis points worse than the prior-year quarter. Operating margin was 3.3%, 290 basis points better than the prior-year quarter. Net margin was -7.8%, 320 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $115.9 million. On the bottom line, the average EPS estimate is $0.29.

Next year's average estimate for revenue is $482.2 million. The average EPS estimate is $1.20.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 104 members out of 107 rating the stock outperform, and three members rating it underperform. Among 38 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 38 give QR Energy a green thumbs-up, and give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on QR Energy is outperform, with an average price target of $20.57.

Is QR Energy the right energy stock for you? Read about a handful of timely, profit-producing plays on expensive crude in "3 Stocks for $100 Oil." Click here for instant access to this free report.

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 (1) | 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 08, 2013, at 10:42 PM, zorro6204 wrote:

    "Seth" thing truth squad here. First, the headline, earnings mean nothing for an MLP due to the GAAP treatment of hedging derivatives. DCF was actually down from last quarter, sharply.

    And that doesn't mean much either, because as "Seth" fails to point out, this quarter was impacted by a substantial acquisition adding to production in a material way for the first time.

    Margin - for a 100% hedged upstream? What possible use is there in comparing that metric? They don't sell electronics.

    Anyway, the real takeaway should be this; they transitioned to a new deal with the sponsor, increasing their share of g&a, had a pretty marginal quarter in terms of operations (as did many other upstreams), and still held serve, covered at 1.0.

    There was a lot of concern last year about the g&a deal, but of course the sponsor factored in future structural changes in setting the distribution. This isn't the last deal they intend to do, and they can hardly build a rep cutting the distribution of their first public MLP!

    It's absurdly priced, yields two points higher than peer BBEP, which had an absolutely dismal quarter. Back up the truck, it can't stay at 11.7% forever.

Add your comment.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2418478, ~/Articles/ArticleHandler.aspx, 10/1/2016 1:21:08 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 4 hours ago Sponsored by:
DOW 18,308.15 164.70 0.91%
S&P 500 2,168.27 17.14 0.80%
NASD 5,312.00 42.85 0.81%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

12/31/1969 7:00 PM
QRE.DL $0.00 Down +0.00 +0.00%
QR Energy CAPS Rating: ****