The 10-second takeaway
For the quarter ended March 31 (Q1), QR Energy missed estimates on revenue and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP loss per share dropped.
Gross margin contracted, operating margin grew, and net margin improved.
QR Energy booked revenue of $65.8 million. The five analysts polled by S&P Capital IQ wanted to see sales of $71.0 million on the same basis. GAAP reported sales were much higher than the prior-year quarter's $30.8 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 $1.04. The five earnings estimates compiled by S&P Capital IQ predicted $0.33 per share. GAAP EPS were -$0.49 for Q1 compared to -$0.82 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 65.0%, 650 basis points worse than the prior-year quarter. Operating margin was 21.1%, 11,150 basis points better than the prior-year quarter. Net margin was -11.0%, 8,440 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $77.1 million. On the bottom line, the average EPS estimate is $0.34.
Next year's average estimate for revenue is $322.4 million. The average EPS estimate is $1.44.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 32 members out of 34 rating the stock outperform, and two members rating it underperform. Among 11 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), all 11 give QR Energy a green thumbs-up.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on QR Energy is outperform, with an average price target of $24.50.
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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. 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.