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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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool owns shares of Denbury Resources. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.