The Gory Details of Northern Oil and Gas' Earnings Miss

Before you go, we thought you'd like these...
Before you go close icon

Northern Oil and Gas (ASE: NOG) reported earnings on Wednesday. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Northern Oil and Gas whiffed on revenues and whiffed on earnings per share.

Compared to the prior-year quarter, revenue increased significantly, and GAAP loss per share stayed the same.

Gross margins shrank, operating margins grew, and net margins grew.

Revenue details
Northern Oil and Gas booked revenue of $27 million. The eight analysts polled by S&P Capital IQ looked for sales of $54.2 million on the same basis. GAAP reported sales were 79% higher than the prior-year quarter's $24 million.

anImage

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 $0.21. The 10 earnings estimates compiled by S&P Capital IQ forecast $0.24 per share on the same basis. GAAP EPS of -$0.03 were the same as the prior-year quarter.

anImage

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 80%, 530 basis points worse than the prior-year quarter. Operating margin was -0.3%, 1,200 basis points better than the prior-year quarter. Net margin was -3.2%, 410 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $61 million. On the bottom line, the average EPS estimate is $0.27.

Next year's average estimate for revenue is $306.7 million. The average EPS estimate is $1.36.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 596 members rating the stock outperform, and 65 members rating it underperform. Among 133 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 114 give Northern Oil and Gas a green thumbs-up, and 19 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Northern Oil and Gas is outperform, with an average price target of $30.50.

Is Northern Oil and Gas the right energy stock for you? Read about a handful of timely, profit-producing plays on expensive crude in "3 Stocks for $100 Oil." Click here for instant access to this free report.

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.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

From Our Partners