The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Endeavour International missed estimates on revenues and exceeded expectations on earnings per share.
Compared to the prior-year quarter, revenue was unchanged, and GAAP earnings per share contracted to a loss.
Gross margins improved, operating margins contracted, and net margins shrank.
Endeavour International notched revenue of $16.6 million. The six analysts polled by S&P Capital IQ expected a top line of $17.5 million on the same basis. GAAP reported sales were 0.4% higher than the prior-year quarter's $16.6 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 -$0.16. The nine earnings estimates compiled by S&P Capital IQ predicted -$0.27 per share on the same basis. GAAP EPS were -$1.15 for Q4 against $2.35 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 83.3%, 1,020 basis points better than the prior-year quarter. Operating margin was -205.4%, 9,610 basis points worse than the prior-year quarter. Net margin was -268.4%, 76,810 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $24.1 million. On the bottom line, the average EPS estimate is -$0.27.
Next year's average estimate for revenue is $445.3 million. The average EPS estimate is $1.82.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 177 members rating the stock outperform and 11 members rating it underperform. Among 42 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 35 give Endeavour International 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 Endeavour International is outperform, with an average price target of $12.75.
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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.