The 10-second takeaway
For the quarter ended June 30 (Q2), Forest Oil whiffed on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank significantly and GAAP earnings per share shrank to a loss.
Margins shrank across the board.
Forest Oil reported revenue of $135.7 million. The eight analysts polled by S&P Capital IQ anticipated revenue of $160.9 million on the same basis. GAAP reported sales were 27% lower than the prior-year quarter's $186.6 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 $0.06. The 17 earnings estimates compiled by S&P Capital IQ averaged $0.06 per share. GAAP EPS were -$4.44 for Q2 against $0.34 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 72.2%, 660 basis points worse than the prior-year quarter. Operating margin was 34.0%, 3,030 basis points worse than the prior-year quarter. Net margin was -376.7%, 39,760 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $164.0 million. On the bottom line, the average EPS estimate is $0.07.
Next year's average estimate for revenue is $656.2 million. The average EPS estimate is $0.35.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 336 members rating the stock outperform and 15 members rating it underperform. Among 74 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 67 give Forest Oil 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 Forest Oil is outperform, with an average price target of $14.25.
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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.