The 10-second takeaway
For the quarter ended June 30 (Q2), BP beat expectations on revenues and whiffed on earnings per share.
Compared to the prior-year quarter, revenue expanded slightly. Non-GAAP earnings per share dropped significantly. GAAP earnings per share grew.
Margins grew across the board.
BP reported revenue of $94.71 billion. The one analyst polled by S&P Capital IQ looked for a top line of $90.29 billion on the same basis. GAAP reported sales were the same as the prior-year quarter's.
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 $0.86. The six earnings estimates compiled by S&P Capital IQ predicted $1.15 per share. Non-GAAP EPS of $0.86 for Q2 were 26% lower than the prior-year quarter's $1.16 per share. GAAP EPS were $0.11 for Q2 compared to -$0.07 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 11.8%, 310 basis points better than the prior-year quarter. Operating margin was 4.5%, 270 basis points better than the prior-year quarter. Net margin was 2.1%, 360 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $87.63 billion. On the bottom line, the average EPS estimate is $1.31.
Next year's average estimate for revenue is $348.57 billion. The average EPS estimate is $5.05.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 4,918 members out of 5,244 rating the stock outperform, and 326 members rating it underperform. Among 1,017 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 969 give BP a green thumbs-up, and 48 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on BP is outperform, with an average price target of $47.99.
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