The 10-second takeaway
For the quarter ended June 30 (Q2), BP beat expectations on revenue and whiffed on earnings per share.
Compared to the prior-year quarter, revenue dropped and GAAP earnings per share contracted to a loss.
Margins shrank across the board.
BP reported revenue of $93.34 billion. The three analysts polled by S&P Capital IQ predicted net sales of $83.69 billion on the same basis. GAAP reported sales were 7.9% lower than the prior-year quarter's $101.36 billion.
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 $1.16. The 10 earnings estimates compiled by S&P Capital IQ averaged $1.51 per share. GAAP EPS were -$0.07 for Q2 versus $0.30 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 8.7%, 560 basis points worse than the prior-year quarter. Operating margin was 1.8%, 600 basis points worse than the prior-year quarter. Net margin was -1.5%, 710 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $83.28 billion. On the bottom line, the average EPS estimate is $1.38.
Next year's average estimate for revenue is $364.23 billion. The average EPS estimate is $5.59.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 4,933 members out of 5,260 rating the stock outperform, and 327 members rating it underperform. Among 1,049 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 996 give BP a green thumbs-up, and 53 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on BP is outperform, with an average price target of $49.84.
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Seth Jayson owned shares of the following at the time of publication: BP. 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 has no positions in the stocks mentioned above. 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.