The 10-second takeaway
For the quarter ended June 30 (Q2), PDC Energy beat expectations on revenue and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank and GAAP earnings per share increased significantly.
Gross margins contracted, operating margins improved, and net margins increased.
PDC Energy logged revenue of $106.0 million. The nine analysts polled by S&P Capital IQ foresaw revenue of $94.9 million on the same basis. GAAP reported sales were 22% lower than the prior-year quarter's $86.4 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 -$0.06. The 11 earnings estimates compiled by S&P Capital IQ anticipated $0.00 per share. GAAP EPS of $0.46 for Q2 were 18% higher than the prior-year quarter's $0.39 per share. (The prior-year quarter included $0.04 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 58.9%, 50 basis points worse than the prior-year quarter. Operating margin was 39.6%, 870 basis points better than the prior-year quarter. Net margin was 18.2%, 760 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $106.6 million. On the bottom line, the average EPS estimate is -$0.16.
Next year's average estimate for revenue is $406.1 million. The average EPS estimate is $0.16.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 279 members out of 304 rating the stock outperform, and 25 members rating it underperform. Among 62 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 58 give PDC 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 PDC Energy is buy, with an average price target of $41.91.
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