Denbury Resources
The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Denbury Resources missed slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share contracted significantly.
Gross margins grew, operating margins contracted, net margins dropped.
Revenue details
Denbury Resources booked revenue of $600.4 million. The seven analysts polled by S&P Capital IQ expected a top line of $612.4 million on the same basis. GAAP reported sales were 4.9% higher than the prior-year quarter's $572.1 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 $0.33. The 17 earnings estimates compiled by S&P Capital IQ forecast $0.32 per share. GAAP EPS of $0.22 for Q3 were 68% lower than the prior-year quarter's $0.68 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 78.1%, 870 basis points better than the prior-year quarter. Operating margin was 39.8%, 4,350 basis points worse than the prior-year quarter. Net margin was 14.2%, 3,400 basis points worse than the prior-year quarter.
Looking ahead
Next quarter's average estimate for revenue is $627.6 million. On the bottom line, the average EPS estimate is $0.32.
Next year's average estimate for revenue is $2.48 billion. The average EPS estimate is $1.43.
Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 1,113 members out of 1,137 rating the stock outperform, and 24 members rating it underperform. Among 272 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 268 give Denbury Resources 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 Denbury Resources is outperform, with an average price target of $22.53.
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