The 10-second takeaway
For the quarter ended March 31 (Q1), Stone Energy beat expectations on revenues and beat slightly on earnings per share.
Compared with the prior-year quarter, revenue grew significantly and GAAP earnings per share improved significantly.
Gross margins dropped, operating margins expanded, net margins increased.
Stone Energy reported revenue of $244.1 million. The two analysts polled by S&P Capital IQ predicted sales of $225.5 million on the same basis. GAAP reported sales were 24% higher than the prior-year quarter's $197.9 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 $1.03. The six earnings estimates compiled by S&P Capital IQ anticipated $1.01 per share. GAAP EPS of $1.06 for Q1 were 31% higher than the prior-year quarter's $0.81 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 79.0%, 10 basis points worse than the prior-year quarter. Operating margin was 34.7%, 240 basis points better than the prior-year quarter. Net margin was 20.8%, 70 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $244.3 million. On the bottom line, the average EPS estimate is $0.98.
Next year's average estimate for revenue is $1.01 billion. The average EPS estimate is $4.16.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 436 members out of 460 rating the stock outperform, and 24 members rating it underperform. Among 106 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 100 give Stone Energy a green thumbs-up, and six give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Stone Energy is buy, with an average price target of $41.43.
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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. He is the 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 don't 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.