The 10-second takeaway
For the quarter ended Dec. 31 (Q4), TransGlobe Energy beat slightly on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly. Non-GAAP earnings per share grew significantly. GAAP earnings per share increased.
Gross margins contracted, operating margins expanded, net margins dropped.
TransGlobe Energy reported revenue of $92.4 million. The two analysts polled by S&P Capital IQ expected revenue of $90.8 million on the same basis. GAAP reported sales were 53% higher than the prior-year quarter's $60.6 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 $0.50. The five earnings estimates compiled by S&P Capital IQ forecast $0.36 per share. Non-GAAP EPS of $0.50 for Q4 were 72% higher than the prior-year quarter's $0.29 per share. GAAP EPS of $0.46 for Q4 were 12% higher than the prior-year quarter's $0.41 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 81.3%, 180 basis points worse than the prior-year quarter. Operating margin was 60.2%, 180 basis points better than the prior-year quarter. Net margin was 37.6%, much worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $84.0 million. On the bottom line, the average EPS estimate is $0.30.
Next year's average estimate for revenue is $375.0 million. The average EPS estimate is $1.52.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 507 members out of 530 rating the stock outperform, and 23 members rating it underperform. Among 106 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 104 give TransGlobe Energy a green thumbs-up, and two give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on TransGlobe Energy is outperform, with an average price target of $16.59.
Is TransGlobe 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 TransGlobe 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 position in any of the stocks mentioned. 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.