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.
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 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.
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.
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.
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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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 Denbury Resources. 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.