The 10-second takeaway
For the quarter ended June 30 (Q2), SandRidge Energy beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly and GAAP earnings per share expanded significantly.
Gross margins improved, operating margins dropped, net margins expanded.
SandRidge Energy logged revenue of $478.4 million. The 12 analysts polled by S&P Capital IQ foresaw net sales of $466.7 million on the same basis. GAAP reported sales were 31% higher than the prior-year quarter's $364.8 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 $0.07. The 22 earnings estimates compiled by S&P Capital IQ predicted $0.01 per share. GAAP EPS of $1.47 for Q2 were 250% higher than the prior-year quarter's $0.42 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 66.3%, 150 basis points better than the prior-year quarter. Operating margin was 19.4%, 5,720 basis points worse than the prior-year quarter. Net margin was 172.0%, 11,440 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $543.3 million. On the bottom line, the average EPS estimate is $0.03.
Next year's average estimate for revenue is $1.96 billion. The average EPS estimate is $0.14.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,481 members out of 1,536 rating the stock outperform, and 55 members rating it underperform. Among 283 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 272 give SandRidge Energy a green thumbs-up, and 11 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on SandRidge Energy is outperform, with an average price target of $9.55.
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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. 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.