The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Ultra Petroleum whiffed on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank significantly and GAAP earnings per share contracted to a loss.
Margins contracted across the board.
Ultra Petroleum reported revenue of $196.4 million. The 12 analysts polled by S&P Capital IQ wanted to see net sales of $269.3 million on the same basis. GAAP reported sales were 27% lower than the prior-year quarter's $267.5 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 $0.64. The 20 earnings estimates compiled by S&P Capital IQ predicted $0.48 per share. GAAP EPS were -$3.94 for Q3 versus $0.97 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 67.9%, 1,610 basis points worse than the prior-year quarter. Operating margin was 20.3%, 7,200 basis points worse than the prior-year quarter. Net margin was -306.6%, 36,240 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $255.6 million. On the bottom line, the average EPS estimate is $0.41.
Next year's average estimate for revenue is $1.02 billion. The average EPS estimate is $1.55.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 1,525 members out of 1,576 rating the stock outperform, and 51 members rating it underperform. Among 312 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 299 give Ultra Petroleum a green thumbs-up, and 13 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Ultra Petroleum is hold, with an average price target of $26.16.
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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 owns shares of Ultra Petroleum and has the following options: short JAN 2014 $20.00 puts on Ultra Petroleum, long JAN 2014 $30.00 calls on Ultra Petroleum, long JAN 2014 $40.00 calls on Ultra Petroleum, and long JAN 2014 $50.00 calls on Ultra Petroleum. Motley Fool newsletter services recommend Ultra Petroleum. 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.