The 10-second takeaway
For the quarter ended June 30 (Q2), Endeavour International whiffed on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue improved significantly and GAAP loss per share increased.
Gross margins grew, operating margins dropped, and net margins contracted.
Endeavour International booked revenue of $23.0 million. The two analysts polled by S&P Capital IQ expected sales of $35.9 million on the same basis. GAAP reported sales were 21% higher than the prior-year quarter's $19.1 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 -$0.91. The seven earnings estimates compiled by S&P Capital IQ forecast -$0.34 per share. GAAP EPS were -$1.31 for Q2 versus -$0.42 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 75.0%, 830 basis points better than the prior-year quarter. Operating margin was -79.8%, 4,990 basis points worse than the prior-year quarter. Net margin was -220.9%, 13,900 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $108.1 million. On the bottom line, the average EPS estimate is $0.26.
Next year's average estimate for revenue is $296.5 million. The average EPS estimate is -$1.08.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 173 members rating the stock outperform and 11 members rating it underperform. Among 27 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 20 give Endeavour International a green thumbs-up, and seven give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Endeavour International is buy, with an average price target of $15.21.
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