Plains Exploration & Production
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Plains Exploration & Production beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly and GAAP earnings per share improved.
Gross margins dropped, operating margins increased, net margins improved.
Plains Exploration & Production reported revenue of $501.8 million. The eight analysts polled by S&P Capital IQ expected a top line of $487.3 million on the same basis. GAAP reported sales were 27% higher than the prior-year quarter's $408.1 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 $0.45. The 15 earnings estimates compiled by S&P Capital IQ forecast $0.41 per share on the same basis. GAAP EPS were $0.69 for Q3 versus -$0.14 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 68.9%, 130 basis points worse than the prior-year quarter. Operating margin was 19.7%, 1,760 basis points better than the prior-year quarter. Net margin was 19.1%, 2,390 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $499.7 million. On the bottom line, the average EPS estimate is $0.37.
Next year's average estimate for revenue is $1.94 billion. The average EPS estimate is $1.76.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 406 members out of 420 rating the stock outperform, and 14 members rating it underperform. Among 112 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 108 give Plains Exploration & Production a green thumbs-up, and four give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Plains Exploration & Production is outperform, with an average price target of $46.78.
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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.