Energy XXI Outruns Estimates Again

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Energy XXI (NAS: EXXI) reported earnings on Feb. 1. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q2), Energy XXI beat expectations on revenues and earnings per share.

Compared to the prior-year quarter, revenue improved significantly and GAAP earnings per share grew.

Margins grew across the board.

Revenue details
Energy XXI tallied revenue of $340.6 million. The nine analysts polled by S&P Capital IQ predicted sales of $289.1 million. Sales were 96% higher than the prior-year quarter's $174.0 million.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.

EPS details
EPS came in at $1.11. The 11 earnings estimates compiled by S&P Capital IQ averaged $0.69 per share. GAAP EPS were $1.11 for Q2 versus -$0.17 per share for the prior-year quarter.

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Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 76.9%, 330 basis points better than the prior-year quarter. Operating margin was 40.5%, 1,490 basis points better than the prior-year quarter. Net margin was 28.5%, 2,220 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $318.0 million. On the bottom line, the average EPS estimate is $0.74.

Next year's average estimate for revenue is $1.25 billion. The average EPS estimate is $2.92.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 185 members out of 198 rating the stock outperform, and 13 members rating it underperform. Among 52 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 50 give Energy XXI a green thumbs-up, and two give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Energy XXI is outperform, with an average price target of $39.08.

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At the time this article was published 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 ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. 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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