The 10-second takeaway
For the quarter ended Dec. 31 (Q4), QR Energy crushed expectations on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly. Non-GAAP earnings per share increased significantly. GAAP earnings per share increased.
Margins shrank across the board.
QR Energy chalked up revenue of $97.4 million. The nine analysts polled by S&P Capital IQ expected revenue of $76.2 million on the same basis. GAAP reported sales were 42% lower than the prior-year quarter's $168.7 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 $2.21. The 13 earnings estimates compiled by S&P Capital IQ forecast $0.23 per share. Non-GAAP EPS of $2.21 for Q4 were 325% higher than the prior-year quarter's $0.52 per share. GAAP EPS were $0.24 for Q4 compared to -$1.30 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 59.1%, 560 basis points worse than the prior-year quarter. Operating margin was 15.2%, much worse than the prior-year quarter. Net margin was 2.0%, much worse than the prior-year quarter.
Next quarter's average estimate for revenue is $99.4 million. On the bottom line, the average EPS estimate is $0.33.
Next year's average estimate for revenue is $420.6 million. The average EPS estimate is $1.44.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 94 members out of 98 rating the stock outperform, and four members rating it underperform. Among 40 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 40 give QR 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 QR Energy is outperform, with an average price target of $21.05.
Is QR Energy the right energy stock for you? Read about a handful of timely, profit-producing plays on expensive crude in "3 Stocks for $100 Oil." Click here for instant access to this free report.
- Add QR Energy to My Watchlist.