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The Gory Details of BP's Earnings Miss

By Seth Jayson - Updated Apr 10, 2017 at 12:32PM

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Just the facts, Fool.

BP (NYSE: BP) reported earnings on July 30. Here are the numbers you need to know.

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.

Revenue details
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 details
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.

Margin details
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.)

Looking ahead
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.

Investor sentiment
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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Seth Jayson owned shares of the following at the time of publication: BP. 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.

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