The 10-second takeaway
For the quarter ended March 31 (Q1), Legacy Reserves beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly and GAAP earnings per share improved.
Margins grew across the board.
Legacy Reserves notched revenue of $92.6 million. The seven analysts polled by S&P Capital IQ hoped for a top line of $87.8 million on the same basis. GAAP reported sales were 27% higher than the prior-year quarter's $72.8 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 $0.55. The seven earnings estimates compiled by S&P Capital IQ averaged $0.46 per share. GAAP EPS were $0.15 for Q1 against -$1.39 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 67.5%, 300 basis points better than the prior-year quarter. Operating margin was 35.9%, 11,530 basis points better than the prior-year quarter. Net margin was 8.0%, 9,100 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $88.3 million. On the bottom line, the average EPS estimate is $0.59.
Next year's average estimate for revenue is $365.3 million. The average EPS estimate is $2.22.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 261 members out of 267 rating the stock outperform, and six members rating it underperform. Among 83 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 83 give Legacy Reserves a green thumbs-up.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Legacy Reserves is buy, with an average price target of $33.43.
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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.