The 10-second takeaway
For the quarter ended March 31 (Q1), EXCO Resources whiffed on revenue and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank significantly and GAAP earnings per share shrank to a loss. The non-GAAP profit was a surprise, as analysts had predicted a loss.
Margins contracted across the board.
EXCO Resources reported revenue of $134.8 million. The three analysts polled by S&P Capital IQ expected a top line of $189.4 million on the same basis. GAAP reported sales were 16% lower than the prior-year quarter's $161.2 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 $0.03. The 10 earnings estimates compiled by S&P Capital IQ predicted -$0.01 per share. GAAP EPS were -$1.32 for Q1 against $0.10 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 58.2%, 1,560 basis points worse than the prior-year quarter. Operating margin was -230.7%, 24,810 basis points worse than the prior-year quarter. Net margin was -208.9%, 22,250 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $183.1 million. On the bottom line, the average EPS estimate is -$0.02.
Next year's average estimate for revenue is $753.5 million. The average EPS estimate is -$0.01.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 477 members rating the stock outperform and 25 members rating it underperform. Among 94 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 90 give EXCO Resources 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 EXCO Resources is hold, with an average price target of $10.
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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.