Basic Energy Services
The 10-second takeaway
For the quarter ended June 30 (Q2), Basic Energy Services beat expectations on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped. Non-GAAP earnings per share contracted to a loss. GAAP earnings per share dropped to a loss.
Margins dropped across the board.
Basic Energy Services booked revenue of $325.7 million. The nine analysts polled by S&P Capital IQ expected to see revenue of $319.3 million on the same basis. GAAP reported sales were 9.9% lower than the prior-year quarter's $361.5 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 -$0.15. The 14 earnings estimates compiled by S&P Capital IQ averaged -$0.09 per share. Non-GAAP EPS were -$0.15 for Q2 versus $0.39 per share for the prior-year quarter. GAAP EPS were -$0.32 for Q2 versus $0.36 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 31.7%, 380 basis points worse than the prior-year quarter. Operating margin was 0.6%, 1,000 basis points worse than the prior-year quarter. Net margin was -3.9%, 800 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $339.1 million. On the bottom line, the average EPS estimate is $0.01.
Next year's average estimate for revenue is $1.30 billion. The average EPS estimate is -$0.30.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 318 members out of 338 rating the stock outperform, and 20 members rating it underperform. Among 72 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 65 give Basic Energy Services a green thumbs-up, and seven give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Basic Energy Services is outperform, with an average price target of $16.39.
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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.