The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Legacy Reserves beat slightly on revenue and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue improved significantly and GAAP loss per share improved.
Gross margin contracted, operating margin increased, and net margin contracted.
Legacy Reserves chalked up revenue of $86.9 million. The six analysts polled by S&P Capital IQ anticipated revenue of $86.0 million on the same basis. GAAP reported sales were 39% higher than the prior-year quarter's $62.3 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.56. The seven earnings estimates compiled by S&P Capital IQ averaged $0.51 per share on the same basis. GAAP EPS were -$1.28 for Q4 compared to -$0.45 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 64.5%, 210 basis points worse than the prior-year quarter. Operating margin was 27.1%, 5,170 basis points better than the prior-year quarter. Net margin was -67.3%, 3,730 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $87.6 million. On the bottom line, the average EPS estimate is $0.45.
Next year's average estimate for revenue is $365.4 million. The average EPS estimate is $2.00.
The stock has a five-star rating (out of five) at Motley Fool CAPS. Among 100 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), all of them give Legacy Reserves a green thumbs-up.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Legacy Reserves is buy, with an average price target of $33.71.
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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. 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.