Magnum Hunter Resources
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Magnum Hunter Resources beat expectations on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly and GAAP loss per share grew.
Gross margins grew, operating margins contracted, and net margins shrank.
Magnum Hunter Resources logged revenue of $49.1 million. The nine analysts polled by S&P Capital IQ looked for revenue of $46.0 million on the same basis. GAAP reported sales were much higher than the prior-year quarter's $9.7 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 -$0.05. The 14 earnings estimates compiled by S&P Capital IQ predicted -$0.04 per share on the same basis. GAAP EPS were -$0.46 for Q4 compared to -$0.03 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 60.0%, 400 basis points better than the prior-year quarter. Operating margin was -111.1%, 4,520 basis points worse than the prior-year quarter. Net margin was -116.0%, 10,830 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $55.5 million. On the bottom line, the average EPS estimate is -$0.03.
Next year's average estimate for revenue is $262.3 million. The average EPS estimate is $0.05.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 141 members out of 151 rating the stock outperform, and 10 members rating it underperform. Among 33 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 25 give Magnum Hunter Resources a green thumbs-up, and eight give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Magnum Hunter Resources is buy, with an average price target of $7.40.
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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.