The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Kosmos Energy crushed expectations on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted and GAAP earnings per share contracted to a loss.
Margins contracted across the board.
Kosmos Energy reported revenue of $223.2 million. The four analysts polled by S&P Capital IQ expected to see revenue of $133.1 million on the same basis. GAAP reported sales were 3.1% lower than the prior-year quarter's $230.4 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 -$0.10. The eight earnings estimates compiled by S&P Capital IQ forecast -$0.09 per share. GAAP EPS were -$0.10 for Q3 against $0.13 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 79.9%, 960 basis points worse than the prior-year quarter. Operating margin was 5.4%, 4,600 basis points worse than the prior-year quarter. Net margin was -16.2%, 3,870 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $273.2 million. On the bottom line, the average EPS estimate is $0.10.
Next year's average estimate for revenue is $616.8 million. The average EPS estimate is -$0.15.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 11 members out of 15 rating the stock outperform, and four members rating it underperform. Among three CAPS All-Star picks (recommendations by the highest-ranked CAPS members), three give Kosmos Energy a green thumbs-up, and give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Kosmos Energy is outperform, with an average price target of $15.50.
Are you missing a major story in the energy space? Read about "One Stock to Own Before Nat Gas Act 2011 Becomes Law." Click here for instant access to this free report.
- Add Kosmos Energy to My Watchlist.
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.