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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