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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