Memorial Production Partners
The 10-second takeaway
For the quarter ended March 31 (Q1), Memorial Production Partners whiffed on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly. Non-GAAP earnings per share contracted significantly. GAAP earnings per share dropped to a loss.
Gross margins increased, operating margins dropped, net margins dropped.
Memorial Production Partners reported revenue of $44.3 million. The six analysts polled by S&P Capital IQ anticipated revenue of $51.4 million on the same basis. GAAP reported sales were much higher than the prior-year quarter's $18.9 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 $0.36. The 10 earnings estimates compiled by S&P Capital IQ predicted $0.45 per share. Non-GAAP EPS of $0.36 for Q1 were 62% lower than the prior-year quarter's $0.95 per share. GAAP EPS were -$0.14 for Q1 compared to $0.94 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 64.2%, 600 basis points better than the prior-year quarter. Operating margin was -2.7%, much worse than the prior-year quarter. Net margin was -11.3%, much worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $57.7 million. On the bottom line, the average EPS estimate is $0.46.
Next year's average estimate for revenue is $237.4 million. The average EPS estimate is $1.91.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 23 members out of 24 rating the stock outperform, and one members rating it underperform. Among six CAPS All-Star picks (recommendations by the highest-ranked CAPS members), six give Memorial Production Partners a green thumbs-up, and give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Memorial Production Partners is outperform, with an average price target of $21.79.
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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.