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Basic Energy Services Goes Negative

By Seth Jayson - Updated Apr 10, 2017 at 1:42PM

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Just the facts, Fool.

Basic Energy Services (NYSE: BAS) reported earnings on April 24. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), Basic Energy Services missed slightly on revenues and exceeded expectations on earnings per share.

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

Margins shrank across the board.

Revenue details
Basic Energy Services logged revenue of $304.4 million. The 11 analysts polled by S&P Capital IQ anticipated revenue of $309.1 million on the same basis. GAAP reported sales were 18% lower than the prior-year quarter's $370.9 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 -$0.21. The 18 earnings estimates compiled by S&P Capital IQ predicted -$0.25 per share. Non-GAAP EPS were -$0.21 for Q1 versus $0.50 per share for the prior-year quarter. GAAP EPS were -$0.22 for Q1 against $0.47 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 30.7%, 530 basis points worse than the prior-year quarter. Operating margin was 0.5%, much worse than the prior-year quarter. Net margin was -2.9%, 820 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $329.6 million. On the bottom line, the average EPS estimate is -$0.08.

Next year's average estimate for revenue is $1.33 billion. The average EPS estimate is -$0.22.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 317 members out of 337 rating the stock outperform, and 20 members rating it underperform. Among 67 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 61 give Basic Energy Services 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 Basic Energy Services is hold, with an average price target of $16.77.

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