Basic Energy Services Meets on the Top Line, Misses Where It Counts

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Basic Energy Services (NYS: BAS) reported earnings on Feb. 22. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Basic Energy Services met expectations on revenues and missed expectations on earnings per share.

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

Margins improved across the board.

Revenue details
Basic Energy Services booked revenue of $354.4 million. The 11 analysts polled by S&P Capital IQ predicted a top line of $353.3 million on the same basis. GAAP reported sales were 66% higher than the prior-year quarter's $212.9 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 15 earnings estimates compiled by S&P Capital IQ predicted $0.62 per share on the same basis. GAAP EPS were $0.54 for Q4 compared to -$0.05 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 39.2%, 550 basis points better than the prior-year quarter. Operating margin was 15.5%, 1,110 basis points better than the prior-year quarter. Net margin was 6.4%, 730 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $353.7 million. On the bottom line, the average EPS estimate is $0.59.

Next year's average estimate for revenue is $1.47 billion. The average EPS estimate is $2.52.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 312 members out of 335 rating the stock outperform, and 23 members rating it underperform. Among 99 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 92 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 $28.27.

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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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