The 10-second takeaway
For the quarter ended June 30 (Q2), Swift Energy beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped and GAAP earnings per share contracted significantly. The profit was a surprise, as analysts had predicted a loss.
Margins contracted across the board.
Swift Energy chalked up revenue of $134.8 million. The six analysts polled by S&P Capital IQ wanted to see sales of $130.8 million on the same basis. GAAP reported sales were 15% lower than the prior-year quarter's $159.2 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 13 earnings estimates compiled by S&P Capital IQ predicted -$0.04 per share. GAAP EPS of $0.07 for Q2 were 93% lower than the prior-year quarter's $0.95 per share. (The prior-year quarter included $0.34 per share in earnings from discontinued operations.)
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 78.1%, 510 basis points worse than the prior-year quarter. Operating margin was 13.7%, 1,800 basis points worse than the prior-year quarter. Net margin was 2.2%, 2,360 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $143.5 million. On the bottom line, the average EPS estimate is -$0.03.
Next year's average estimate for revenue is $565.6 million. The average EPS estimate is $0.15.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 259 members out of 283 rating the stock outperform, and 24 members rating it underperform. Among 48 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 44 give Swift Energy a green thumbs-up, and four give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Swift Energy is outperform, with an average price target of $36.07.
Is Swift Energy the right energy stock for you? Read about a handful of timely, profit-producing plays on expensive crude in "3 Stocks for $100 Oil." Click here for instant access to this free report.
- Add Swift Energy to My Watchlist.
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.