The 10-second takeaway
For the quarter ended June 30 (Q2), Denbury Resources met expectations on revenue and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue was unchanged and GAAP earnings per share dropped significantly.
Gross margins increased, operating margins shrank, and net margins dropped.
Denbury Resources tallied revenue of $601.8 million. The four analysts polled by S&P Capital IQ expected to see sales of $608.5 million on the same basis. GAAP reported sales were 0.9% higher than the prior-year quarter's $596.4 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 $0.36. The 15 earnings estimates compiled by S&P Capital IQ predicted $0.34 per share. GAAP EPS of $0.54 for Q2 were 16% lower than the prior-year quarter's $0.64 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 79.1%, 790 basis points better than the prior-year quarter. Operating margin was 63.9%, 1,380 basis points worse than the prior-year quarter. Net margin was 35.2%, 830 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $633.1 million. On the bottom line, the average EPS estimate is $0.34.
Next year's average estimate for revenue is $2.53 billion. The average EPS estimate is $1.43.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 1,088 members out of 1,109 rating the stock outperform, and 21 members rating it underperform. Among 239 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 238 give Denbury Resources a green thumbs-up, and one gives it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Denbury Resources is outperform, with an average price target of $24.66.
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