The 10-second takeaway
For the quarter ended March 31 (Q1), Sanchez Energy beat slightly on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue increased significantly. Non-GAAP earnings per share grew significantly. GAAP loss per share contracted.
Gross margins dropped, operating margins increased, net margins increased.
Sanchez Energy logged revenue of $30.8 million. The 10 analysts polled by S&P Capital IQ foresaw net sales of $30.3 million on the same basis. GAAP reported sales were much higher than the prior-year quarter's $7.6 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 $0.13. The 13 earnings estimates compiled by S&P Capital IQ predicted $0.16 per share. Non-GAAP EPS of $0.13 for Q1 were 225% higher than the prior-year quarter's $0.04 per share. GAAP EPS were -$0.06 for Q1 versus -$0.09 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 83.5%, 120 basis points worse than the prior-year quarter. Operating margin was 5.6%, much better than the prior-year quarter. Net margin was -0.2%, much better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $59.2 million. On the bottom line, the average EPS estimate is $0.29.
Next year's average estimate for revenue is $274.3 million. The average EPS estimate is $1.32.
The stock has a five-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 Sanchez Energy 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 Sanchez Energy is buy, with an average price target of $26.50.
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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 Smith & Nephew. 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.