The 10-second takeaway
For the quarter ended June 30 (Q2), Oasis Petroleum beat slightly on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share increased significantly.
Gross margins improved, operating margins shrank, net margins increased.
Oasis Petroleum reported revenue of $149.1 million. The 12 analysts polled by S&P Capital IQ looked for revenue of $147.3 million on the same basis. GAAP reported sales were much higher than the prior-year quarter's $67.2 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 $0.32. The 17 earnings estimates compiled by S&P Capital IQ forecast $0.32 per share. GAAP EPS of $0.82 for Q2 were 128% higher than the prior-year quarter's $0.36 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 80.6%, 40 basis points better than the prior-year quarter. Operating margin was 40.4%, 4,880 basis points worse than the prior-year quarter. Net margin was 51.0%, 140 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $170.1 million. On the bottom line, the average EPS estimate is $0.38.
Next year's average estimate for revenue is $647.5 million. The average EPS estimate is $1.46.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 125 members out of 128 rating the stock outperform, and three members rating it underperform. Among 26 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 26 give Oasis Petroleum a green thumbs-up, and give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Oasis Petroleum is outperform, with an average price target of $38.63.
Over the decades, small-cap stocks, like Oasis Petroleum have provided market-beating returns, provided they're value priced and have solid businesses. Read about a pair of companies with a lock on their markets in "Too Small to Fail: Two Small Caps the Government Won't Let Go Broke." Click here for instant access to this free report.
- Add Oasis Petroleum 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.