The 10-second takeaway
For the quarter ended March 31 (Q1), TransGlobe Energy beat expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue grew slightly. Non-GAAP earnings per share grew significantly. GAAP earnings per share expanded significantly.
Gross margins dropped, operating margins dropped, net margins increased.
TransGlobe Energy logged revenue of $79.4 million. The two analysts polled by S&P Capital IQ expected a top line of $69.0 million on the same basis. GAAP reported sales were the same as the prior-year quarter's.
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 $0.24. The three earnings estimates compiled by S&P Capital IQ averaged $0.27 per share. Non-GAAP EPS of $0.24 for Q1 were 60% higher than the prior-year quarter's $0.15 per share. GAAP EPS of $0.26 for Q1 were 73% higher than the prior-year quarter's $0.15 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 81.7%, 280 basis points worse than the prior-year quarter. Operating margin was 58.5%, 120 basis points worse than the prior-year quarter. Net margin was 31.3%, much better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $75.4 million. On the bottom line, the average EPS estimate is $0.30.
Next year's average estimate for revenue is $338.6 million. The average EPS estimate is $1.39.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 513 members out of 536 rating the stock outperform, and 23 members rating it underperform. Among 95 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 94 give TransGlobe Energy a green thumbs-up, and one give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on TransGlobe Energy is outperform, with an average price target of $15.90.
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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 has no position in any of the stocks mentioned. 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.