The 10-second takeaway
For the quarter ended March 31 (Q1), Kosmos Energy missed estimates on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue increased significantly. GAAP earnings per share expanded.
Gross margins contracted, operating margins increased, net margins increased.
Kosmos Energy booked revenue of $228.4 million. The five analysts polled by S&P Capital IQ predicted a top line of $241.3 million on the same basis. GAAP reported sales were 97% higher than the prior-year quarter's $115.8 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 $0.05. The eight earnings estimates compiled by S&P Capital IQ averaged $0.07 per share. GAAP EPS were $0.05 for Q1 against -$0.10 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 89.3%, 440 basis points worse than the prior-year quarter. Operating margin was 33.2%, much better than the prior-year quarter. Net margin was 8.8%, much better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $234.6 million. On the bottom line, the average EPS estimate is $0.07.
Next year's average estimate for revenue is $1.04 billion. The average EPS estimate is $0.33.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 11 members out of 15 rating the stock outperform, and four members rating it underperform. Among three CAPS All-Star picks (recommendations by the highest-ranked CAPS members), three give Kosmos 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 Kosmos Energy is outperform, with an average price target of $16.14.
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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.