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The Gory Details of Total's Earnings Miss

By Seth Jayson - Updated Apr 10, 2017 at 1:39PM

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Just the facts, Fool.

Total (NYSE: TOT) reported earnings on April 26. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), Total missed estimates on revenues and whiffed on earnings per share.

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

Margins contracted across the board.

Revenue details
Total logged revenue of $56.29 billion. The three analysts polled by S&P Capital IQ looked for revenue of $59.06 billion on the same basis. GAAP reported sales were 9.7% lower than the prior-year quarter's $62.35 billion.

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 $1.64. The two earnings estimates compiled by S&P Capital IQ forecast $1.84 per share. Non-GAAP EPS of $1.64 for Q1 were 7.9% lower than the prior-year quarter's $1.78 per share. GAAP EPS of $0.87 for Q1 were 60% lower than the prior-year quarter's $2.16 per share.

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 30.5%, 100 basis points worse than the prior-year quarter. Operating margin was 12.7%, 300 basis points worse than the prior-year quarter. Net margin was 3.5%, 430 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $62.34 billion. On the bottom line, the average EPS estimate is $1.49.

Next year's average estimate for revenue is $242.72 billion. The average EPS estimate is $6.55.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 1,395 members out of 1,421 rating the stock outperform, and 26 members rating it underperform. Among 355 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 350 give Total a green thumbs-up, and five give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Total is outperform, with an average price target of $58.65.

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This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis – even one of our own – helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.

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