The 10-second takeaway
For the quarter ended March 31 (Q1), InterOil beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share improved significantly. The profit was a surprise, as analysts had predicted a loss.
Gross margins shrank, operating margins dropped, net margins increased.
InterOil reported revenue of $338.2 million. The one analyst polled by S&P Capital IQ predicted sales of $284.7 million on the same basis. GAAP reported sales were 39% higher than the prior-year quarter's $243.4 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 $0.19. The one earnings estimate compiled by S&P Capital IQ forecast -$0.19 per share. GAAP EPS of $0.19 for Q1 were much 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 10.8%, 580 basis points worse than the prior-year quarter. Operating margin was 3.7%, 100 basis points worse than the prior-year quarter. Net margin was 2.8%, 250 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $312.9 million. On the bottom line, the average EPS estimate is -$0.11.
Next year's average estimate for revenue is $1.46 billion. The average EPS estimate is -$0.65.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 260 members out of 586 rating the stock outperform, and 326 members rating it underperform. Among 193 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 46 give InterOil a green thumbs-up, and 147 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on InterOil is outperform, with an average price target of $80.00.
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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. 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.