Venoco
The 10-second takeaway
For the quarter ended June 30 (Q2), Venoco met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank and GAAP earnings per share contracted significantly.
Gross margins expanded, operating margins dropped, net margins contracted.
Revenue details
Venoco reported revenue of $82.5 million. The three analysts polled by S&P Capital IQ predicted a top line of $81.9 million on the same basis. GAAP reported sales were 5.5% lower than the prior-year quarter's $87.3 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS details
EPS came in at $0.22. The seven earnings estimates compiled by S&P Capital IQ averaged $0.05 per share. GAAP EPS of $0.24 for Q2 were 23% lower than the prior-year quarter's $0.31 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
Margin details
For the quarter, gross margin was 74.6%, 340 basis points better than the prior-year quarter. Operating margin was 28.8%, 1,200 basis points worse than the prior-year quarter. Net margin was 17.6%, 420 basis points worse than the prior-year quarter.
Looking ahead
Next quarter's average estimate for revenue is $85.8 million. On the bottom line, the average EPS estimate is $0.09.
Next year's average estimate for revenue is $374.7 million. The average EPS estimate is $0.66.
Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 141 members out of 161 rating the stock outperform, and 20 members rating it underperform. Among 46 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 41 give Venoco a green thumbs-up, and five give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Venoco is hold, with an average price target of $11.58.
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