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.
How did PDC Energy treat you during the oil spike in 2008 and the subsequent bust? More importantly, what are you doing to prepare for the next spike that some experts believe may be just around the corner? Prepare yourself with a well-positioned energy stock we profile in "The Only Energy Stock You'll Ever Need." Click here for instant access to this free report.
- Add PDC 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.