The 10-second takeaway
For the quarter ended June 30 (Q2), Ultra Petroleum whiffed on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped significantly and GAAP earnings per share contracted to a loss.
Margins contracted across the board.
Ultra Petroleum logged revenue of $170.3 million. The 12 analysts polled by S&P Capital IQ anticipated a top line of $266.6 million on the same basis. GAAP reported sales were 27% lower than the prior-year quarter's $232.4 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 21 earnings estimates compiled by S&P Capital IQ forecast $0.32 per share. GAAP EPS were -$7.76 for Q2 against $0.67 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 62.6%, 2,960 basis points worse than the prior-year quarter. Operating margin was -1107.0%, 118,310 basis points worse than the prior-year quarter. Net margin was -697.1%, 74,160 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $262.8 million. On the bottom line, the average EPS estimate is $0.35.
Next year's average estimate for revenue is $1.06 billion. The average EPS estimate is $1.30.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 1,534 members out of 1,582 rating the stock outperform, and 48 members rating it underperform. Among 289 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 276 give Ultra Petroleum a green thumbs-up, and 13 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Ultra Petroleum is hold, with an average price target of $28.63.
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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 owns shares of Ultra Petroleum and has the following options: long JAN 2014 $30.00 calls on Ultra Petroleum, long JAN 2014 $40.00 calls on Ultra Petroleum, and long JAN 2014 $50.00 calls on Ultra Petroleum. Motley Fool newsletter services recommend Ultra Petroleum. 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.