The 10-second takeaway
For the quarter ended March 31 (Q1), Forest Oil whiffed on revenue and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue shrank significantly and GAAP loss per share improved.
Gross margin dropped, operating margin increased, and net margin dropped.
Forest Oil chalked up revenue of $158.9 million. The 11 analysts polled by S&P Capital IQ foresaw a top line of $190.1 million on the same basis. GAAP reported sales were 22% lower than the prior-year quarter's $202.6 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.11. The 17 earnings estimates compiled by S&P Capital IQ forecast $0.20 per share. GAAP EPS were -$0.29 for Q1 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 73.1%, 160 basis points worse than the prior-year quarter. Operating margin was 18.0%, 590 basis points better than the prior-year quarter. Net margin was -20.6%, 1,900 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $194.3 million. On the bottom line, the average EPS estimate is $0.20.
Next year's average estimate for revenue is $793.5 million. The average EPS estimate is $0.89.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 333 members out of 349 rating the stock outperform, and 16 members rating it underperform. Among 81 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 77 give Forest Oil 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 Forest Oil is outperform, with an average price target of $17.71.
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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.