The 10-second takeaway
For the quarter ended Dec. 31 (Q2), Evolution Petroleum crushed expectations on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share increased.
Margins improved across the board.
Evolution Petroleum notched revenue of $4.6 million. The two analysts polled by S&P Capital IQ predicted a top line of $3.9 million. GAAP sales were much higher than the prior-year quarter's $1.2 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 $0.04. The three earnings estimates compiled by S&P Capital IQ anticipated $0.05 per share. GAAP EPS were $0.04 for Q2 compared to -$0.02 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 90.7%, 1,820 basis points better than the prior-year quarter. Operating margin was 52.2%, 10,030 basis points better than the prior-year quarter. Net margin was 30.7%, 6,980 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $4.1 million. On the bottom line, the average EPS estimate is $0.06.
Next year's average estimate for revenue is $16.2 million. The average EPS estimate is $0.21.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 219 members rating the stock outperform and nine members rating it underperform. Among 55 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 52 give Evolution Petroleum a green thumbs-up, and three give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Evolution Petroleum is buy, with an average price target of $10.50.
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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 owns shares of Evolution Petroleum. 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.