The 10-second takeaway
For the quarter ended March 31 (Q1), Denbury Resources beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted. Non-GAAP earnings per share shrank significantly. GAAP earnings per share dropped significantly.
Gross margins dropped, operating margins increased, net margins contracted.
Denbury Resources booked revenue of $583.1 million. The seven analysts polled by S&P Capital IQ hoped for sales of $543.7 million on the same basis. GAAP reported sales were 8.9% lower than the prior-year quarter's $640.3 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 $0.33. The 17 earnings estimates compiled by S&P Capital IQ averaged $0.29 per share. Non-GAAP EPS of $0.33 for Q1 were 20% lower than the prior-year quarter's $0.41 per share. GAAP EPS of $0.23 for Q1 were 21% lower than the prior-year quarter's $0.29 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 75.3%, 220 basis points worse than the prior-year quarter. Operating margin was 40.2%, 290 basis points better than the prior-year quarter. Net margin was 15.0%, 270 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $617.4 million. On the bottom line, the average EPS estimate is $0.32.
Next year's average estimate for revenue is $2.43 billion. The average EPS estimate is $1.28.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 1,101 members out of 1,125 rating the stock outperform, and 24 members rating it underperform. Among 251 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 248 give Denbury Resources a green thumbs-up, and three give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Denbury Resources is outperform, with an average price target of $22.86.
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