Evolution Petroleum Increases Sales but Misses Revenue Estimate

Just the facts, Fool.

Seth Jayson
Seth Jayson
May 8, 2013 at 12:00AM
Other

Evolution Petroleum (AMEX: EPM) reported earnings on May 7. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q3), Evolution Petroleum missed estimates on revenues and met expectations on earnings per share.

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

Margins increased across the board.

Revenue details
Evolution Petroleum logged revenue of $6.0 million. The three analysts polled by S&P Capital IQ predicted a top line of $6.3 million on the same basis. GAAP reported sales were 24% higher than the prior-year quarter's $4.8 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 $0.07. The four earnings estimates compiled by S&P Capital IQ predicted $0.07 per share. GAAP EPS of $0.07 for Q3 were 75% higher than the prior-year quarter's $0.04 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 91.0%, 500 basis points better than the prior-year quarter. Operating margin was 56.5%, 960 basis points better than the prior-year quarter. Net margin was 39.9%, 960 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $10.2 million. On the bottom line, the average EPS estimate is $0.10.

Next year's average estimate for revenue is $26.4 million. The average EPS estimate is $0.26.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 223 members out of 232 rating the stock outperform, and nine members rating it underperform. Among 36 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 34 give Evolution Petroleum 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 Evolution Petroleum is buy, with an average price target of $11.75.

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