C&J Energy Services Increases Sales but Misses Estimates on Earnings

By Seth Jayson – Updated Apr 10, 2017 at 1:30PM

Just the facts, Fool.

C&J Energy Services (NYSE: CJES) reported earnings on May 1. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), C&J Energy Services missed estimates on revenues and missed estimates on earnings per share.

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

Margins contracted across the board.

Revenue details
C&J Energy Services logged revenue of $276.1 million. The six analysts polled by S&P Capital IQ expected revenue of $287.8 million on the same basis. GAAP reported sales were 15% higher than the prior-year quarter's $239.1 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 $0.46. The 10 earnings estimates compiled by S&P Capital IQ anticipated $0.55 per share. GAAP EPS of $0.46 for Q1 were 50% lower than the prior-year quarter's $0.92 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 34.1%, 550 basis points worse than the prior-year quarter. Operating margin was 14.7%, much worse than the prior-year quarter. Net margin was 9.1%, much worse than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $309.0 million. On the bottom line, the average EPS estimate is $0.58.

Next year's average estimate for revenue is $1.22 billion. The average EPS estimate is $2.34.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 218 members out of 222 rating the stock outperform, and four members rating it underperform. Among 50 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 48 give C&J Energy Services 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 C&J Energy Services is outperform, with an average price target of $27.50.

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About the Author

Seth Jayson (TMFBent) began his Foolish career as a writer before recommending stocks in special products and then taking on the co-advisor role at our small-cap service, Hidden Gems, where he became the longest-serving HG advisor. After that, Seth specialized in beating the market with lesser-known, smaller companies at Market Pass before transitioning into the lead advisor role for Artificial Intelligence and Trend-Spotter. His work at TMF has also included some time building databases and "robots" that wrote thousands of articles on their own, along with other robots that uploaded these articles into our publishing system. Although these were too simple to qualify as AI (except maybe by 1950s terms), he likes to think that keeping a toe in the nitty-gritty of the tech gives him some valuable perspective that can help inform investing decisions. Originally from the frozen Iron Range of northern Minnesota, Seth graduated from Carleton College and holds master's degrees from NYU and the University of Missouri. When he's not riding bikes or hiking with the family, he's probably out running, or making carbon fiber bikes in the garage.

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