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Abraxas Petroleum Beats on Both Top and Bottom Lines

Abraxas Petroleum (Nasdaq: AXAS  ) reported earnings on May 10. Here are the numbers you need to know.

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

Compared to the prior-year quarter, revenue grew significantly. Non-GAAP earnings per share increased. GAAP earnings per share stayed the same.

Gross margins expanded, operating margins expanded, net margins shrank.

Revenue details
Abraxas Petroleum booked revenue of $21.2 million. The eight analysts polled by S&P Capital IQ looked for a top line of $19.7 million on the same basis. GAAP reported sales were 29% higher than the prior-year quarter's $16.4 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 $0.03. The eight earnings estimates compiled by S&P Capital IQ predicted $0.01 per share. Non-GAAP EPS of $0.03 for Q1 were 50% higher than the prior-year quarter's $0.02 per share. GAAP EPS of $0.01 were the same as 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 60.4%, 570 basis points better than the prior-year quarter. Operating margin was 10.5%, 260 basis points better than the prior-year quarter. Net margin was 2.8%, 220 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $22.8 million. On the bottom line, the average EPS estimate is $0.02.

Next year's average estimate for revenue is $92.9 million. The average EPS estimate is $0.07.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 724 members out of 757 rating the stock outperform, and 33 members rating it underperform. Among 95 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 88 give Abraxas Petroleum a green thumbs-up, and seven give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Abraxas Petroleum is outperform, with an average price target of $3.48.

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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.

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  • Report this Comment On May 10, 2013, at 8:01 PM, oilpatch71 wrote:

    It may have beat on the top and bottom however it still is a terrible investment!

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