The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Callon Petroleum beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue improved significantly, and GAAP earnings per share improved significantly.
Margins grew across the board.
Callon Petroleum booked revenue of $31.8 million. The five analysts polled by S&P Capital IQ wanted to see a top line of $28.7 million on the same basis. GAAP reported sales were 30% higher than the prior-year quarter's $24.4 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 $0.20. The six earnings estimates compiled by S&P Capital IQ predicted $0.11 per share on the same basis. GAAP EPS of $1.80 for Q4 were much higher than the prior-year quarter's $0.02 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 87.4%, 670 basis points better than the prior-year quarter. Operating margin was 28.6%, 1,180 basis points better than the prior-year quarter. Net margin was 225.4%, 22,240 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $30.9 million. On the bottom line, the average EPS estimate is $0.13.
Next year's average estimate for revenue is $134.5 million. The average EPS estimate is $0.67.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 497 members rating the stock outperform and 26 members rating it underperform. Among 60 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 56 give Callon Petroleum 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 Callon Petroleum is outperform, with an average price target of $8.68.
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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.