The 10-second takeaway
For the quarter ended March 31 (Q1), SandRidge Energy beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly. Non-GAAP earnings per share contracted to zero. GAAP loss per share expanded.
Gross margins contracted, operating margins expanded, net margins dropped.
SandRidge Energy logged revenue of $511.7 million. The 16 analysts polled by S&P Capital IQ predicted sales of $477.1 million on the same basis. GAAP reported sales were 34% higher than the prior-year quarter's $381.6 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 $0.00. The 23 earnings estimates compiled by S&P Capital IQ predicted -$0.05 per share. Non-GAAP EPS dropped to zero from the prior-year quarter's $0.00. GAAP EPS were -$1.03 for Q1 compared to -$0.58 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 66.8%, 150 basis points worse than the prior-year quarter. Operating margin was 15.5%, much better than the prior-year quarter. Net margin was -93.7%, much worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $447.7 million. On the bottom line, the average EPS estimate is -$0.04.
Next year's average estimate for revenue is $1.91 billion. The average EPS estimate is -$0.19.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,457 members out of 1,517 rating the stock outperform, and 60 members rating it underperform. Among 282 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 270 give SandRidge Energy a green thumbs-up, and 12 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on SandRidge Energy is hold, with an average price target of $6.20.
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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.