Oasis Petroleum Crushes the Estimates

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Oasis Petroleum (NYS: OAS) reported earnings on Feb. 22. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Oasis Petroleum met expectations on revenues and crushed expectations on earnings per share.

Compared with the prior-year quarter, revenue increased significantly and GAAP earnings per share shrank to a loss.

Gross margins expanded, operating margins expanded, net margins contracted.

Revenue details
Oasis Petroleum tallied revenue of $116.9 million. The 17 analysts polled by S&P Capital IQ looked for sales of $116.3 million on the same basis. GAAP reported sales were much higher than the prior-year quarter's $49.1 million.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Non-GAAP EPS came in at $0.58. The 19 earnings estimates compiled by S&P Capital IQ averaged $0.30 per share on the same basis. GAAP EPS were -$0.15 for Q4 versus $0.02 per share for the prior-year quarter.

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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 79.5%, 210 basis points better than the prior-year quarter. Operating margin was 46.7%, 3,550 basis points better than the prior-year quarter. Net margin was -11.5%, 1,470 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $125.2 million. On the bottom line, the average EPS estimate is $0.31.

Next year's average estimate for revenue is $623.0 million. The average EPS estimate is $1.73.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 119 members out of 121 rating the stock outperform, and two members rating it underperform. Among 32 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 31 give Oasis Petroleum a green thumbs-up, and one give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Oasis Petroleum is outperform, with an average price target of $36.33.

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At the time this article was published

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