The 10-second takeaway
For the quarter ended March 31 (Q1), Denbury Resources beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly and GAAP earnings per share increased.
Margins grew across the board.
Denbury Resources chalked up revenue of $645.1 million. The two analysts polled by S&P Capital IQ predicted revenue of $634.4 million on the same basis. GAAP reported sales were 26% higher than the prior-year quarter's $511.1 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 $0.41. The 15 earnings estimates compiled by S&P Capital IQ forecast $0.38 per share. GAAP EPS were $0.29 for Q1 against -$0.04 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 77.7%, 940 basis points better than the prior-year quarter. Operating margin was 37.8%, 2,980 basis points better than the prior-year quarter. Net margin was 17.6%, 2,040 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $610.3 million. On the bottom line, the average EPS estimate is $0.40.
Next year's average estimate for revenue is $2.65 billion. The average EPS estimate is $1.64.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 1,064 members out of 1,085 rating the stock outperform, and 22 members rating it underperform. Among 259 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 258 give Denbury Resources a green thumbs-up, and one give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Denbury Resources is outperform, with an average price target of $25.50.
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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. The Motley Fool owns shares of Denbury Resources. 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.