The 10-second takeaway
For the quarter ended March 31 (Q1), Petroleum Development missed slightly on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly and GAAP earnings per share expanded.
Margins increased across the board.
Petroleum Development reported revenue of $100.3 million. The nine analysts polled by S&P Capital IQ foresaw revenue of $102.2 million on the same basis. GAAP reported sales were 24% higher than the prior-year quarter's $81.0 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 $0.62. The 13 earnings estimates compiled by S&P Capital IQ averaged $0.23 per share. GAAP EPS were $0.67 for Q1 against -$0.85 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 69.4%, 1,390 basis points better than the prior-year quarter. Operating margin was 12.4%, 4,420 basis points better than the prior-year quarter. Net margin was 15.8%, 4,040 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $99.4 million. On the bottom line, the average EPS estimate is $0.17.
Next year's average estimate for revenue is $425.4 million. The average EPS estimate is $1.01.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 278 members out of 304 rating the stock outperform, and 26 members rating it underperform. Among 75 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 70 give Petroleum Development 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 Petroleum Development is outperform, with an average price target of $44.89.
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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.