Plains Exploration & Production
The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Plains Exploration & Production met expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly and GAAP loss per share shrank.
Gross margins were steady, operating margins dropped, net margins grew.
Plains Exploration & Production reported revenue of $605.1 million. The seven analysts polled by S&P Capital IQ predicted a top line of $612.6 million on the same basis. GAAP reported sales were 21% higher than the prior-year quarter's $501.8 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 $0.39. The 16 earnings estimates compiled by S&P Capital IQ predicted $0.42 per share. GAAP EPS were -$0.41 for Q3 against -$0.62 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 73.5%, about the same as the prior-year quarter. Operating margin was 22.9%, 3,570 basis points worse than the prior-year quarter. Net margin was -8.8%, 880 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $634.7 million. On the bottom line, the average EPS estimate is $0.42.
Next year's average estimate for revenue is $2.38 billion. The average EPS estimate is $1.85.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 394 members out of 407 rating the stock outperform, and 13 members rating it underperform. Among 80 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 77 give Plains Exploration & Production a green thumbs-up, and three give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Plains Exploration & Production is outperform, with an average price target of $52.63.
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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.