The 10-second takeaway
For the quarter ended Dec. 31 (Q4), SandRidge Energy beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue improved significantly and GAAP loss per share expanded. The non-GAAP profit was a surprise, as analysts had predicted a loss.
Gross margins expanded, operating margins dropped, net margins dropped.
SandRidge Energy reported revenue of $373.8 million. The 14 analysts polled by S&P Capital IQ expected revenue of $339.2 million on the same basis. GAAP reported sales were 28% higher than the prior-year quarter's $293.1 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 $0.02. The 18 earnings estimates compiled by S&P Capital IQ predicted -$0.02 per share on the same basis. GAAP EPS were -$0.97 for Q4 against -$0.56 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 67.2%, 460 basis points better than the prior-year quarter. Operating margin was -90.3%, 5,430 basis points worse than the prior-year quarter. Net margin was -100.2%, 3,320 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $365.5 million. On the bottom line, the average EPS estimate is $0.00.
Next year's average estimate for revenue is $1.77 billion. The average EPS estimate is $0.14.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 1,403 members out of 1,447 rating the stock outperform, and 44 members rating it underperform. Among 379 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 372 give SandRidge Energy 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 SandRidge Energy is outperform, with an average price target of $10.82.
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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.