The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Sanchez Energy whiffed on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue increased significantly. Non-GAAP earnings per share grew significantly. GAAP loss per share dropped.
Margins grew across the board.
Sanchez Energy notched revenue of $16.7 million. The nine analysts polled by S&P Capital IQ anticipated revenue of $24.9 million on the same basis. GAAP reported sales were much higher than the prior-year quarter's $4.6 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 $0.05. The 10 earnings estimates compiled by S&P Capital IQ predicted $0.15 per share. Non-GAAP EPS of $0.05 for Q4 were 67% higher than the prior-year quarter's $0.03 per share. GAAP EPS were -$0.03 for Q4 versus -$0.06 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 88.4%, 340 basis points better than the prior-year quarter. Operating margin was 1.9%, much better than the prior-year quarter. Net margin was -6.7%, much better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $37.2 million. On the bottom line, the average EPS estimate is $0.23.
Next year's average estimate for revenue is $204.3 million. The average EPS estimate is $1.41.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 13 members out of 13 rating the stock outperform, and members rating it underperform. Among four CAPS All-Star picks (recommendations by the highest-ranked CAPS members), four give Sanchez 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 Sanchez Energy is buy, with an average price target of $28.20.
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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 Smith & Nephew. 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.