The 10-second takeaway
For the quarter ended March 31 (Q3), Evolution Petroleum missed estimates on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly and GAAP earnings per share improved significantly.
Margins increased across the board.
Evolution Petroleum chalked up revenue of $4.8 million. The one analyst polled by S&P Capital IQ wanted to see a top line of $5.1 million on the same basis. GAAP reported sales were much higher than the prior-year quarter's $2.0 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 $0.04. The three earnings estimates compiled by S&P Capital IQ averaged $0.06 per share. GAAP EPS of $0.04 for Q3 were 300% higher than the prior-year quarter's $0.01 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 86.0%, 140 basis points better than the prior-year quarter. Operating margin was 46.9%, 3,710 basis points better than the prior-year quarter. Net margin was 30.3%, 2,190 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $4.8 million. On the bottom line, the average EPS estimate is $0.06.
Next year's average estimate for revenue is $18.7 million. The average EPS estimate is $0.19.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 221 members out of 230 rating the stock outperform, and nine members rating it underperform. Among 45 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 40 give Evolution Petroleum a green thumbs-up, and five give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Evolution Petroleum is buy, with an average price target of $12.00.
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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 Evolution Petroleum. 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.