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Clayton Williams Energy Beats on the Top Line

By Seth Jayson - Updated Apr 10, 2017 at 1:45PM

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Just the facts, Fool.

Clayton Williams Energy (Nasdaq: CWEI) reported earnings on April 24. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), Clayton Williams Energy beat expectations on revenues and missed expectations on earnings per share.

Compared to the prior-year quarter, revenue contracted slightly. GAAP earnings per share dropped to a loss.

Margins contracted across the board.

Revenue details
Clayton Williams Energy recorded revenue of $106.9 million. The five analysts polled by S&P Capital IQ anticipated revenue of $100.0 million on the same basis. GAAP reported sales were the same as the prior-year quarter's.

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 -$3.39. The five earnings estimates compiled by S&P Capital IQ averaged $0.49 per share. GAAP EPS were -$3.39 for Q1 compared to $0.64 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 65.4%, 550 basis points worse than the prior-year quarter. Operating margin was 11.3%, 810 basis points worse than the prior-year quarter. Net margin was -38.6%, much worse than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $91.6 million. On the bottom line, the average EPS estimate is $0.54.

Next year's average estimate for revenue is $387.1 million. The average EPS estimate is $2.23.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 205 members out of 224 rating the stock outperform, and 19 members rating it underperform. Among 48 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 42 give Clayton Williams Energy a green thumbs-up, and six give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Clayton Williams Energy is outperform, with an average price target of $55.50.

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