Kosmos Energy
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.
Revenue details
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 details
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.
Margin details
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.
Looking ahead
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.
Investor sentiment
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.
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