GeoResources Earnings Preview

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Investors hope GeoResources (NAS: GEOI) will top analyst estimates once again after beating predictions by $0.03 in the previous quarter. The company will unveil its latest earnings on Wednesday, March 14. GeoResources is an independent oil and gas company that is engaged in the acquisition and development of oil and gas reserves.

What analysts say:

  • Buy, sell, or hold?: Analysts strongly back GeoResources, with 10 out of 14 rating it a buy and the remainder rating it a hold. Analysts don't like GeoResources as much as competitor Resolute Energy overall. GeoResources' rating hasn't changed over the past three months.
  • Revenue forecasts: On average, analysts predict $37.4 million in revenue this quarter. That would represent a rise of 38.1% from the year-ago quarter.
  • Wall Street earnings expectations: The average analyst estimate is earnings of $0.38 per share. Estimates range from $0.31 to $0.43.

What our community says:
CAPS All-Stars are enthusiastically backing the stock, with 97.1% granting it an outperform rating. The greater community agrees with the All-Stars, as 97% give it a rating of outperform. Even with a robust four out of five stars, GeoResources' CAPS rating falls a little short of the community's upbeat outlook.

Management:
GeoResources' profit has risen year over year by an average of 61.3% over the past five quarters. Revenue has now gone up for three straight quarters.

Now, a look at how efficient management has been at running the business. Margins illustrate how efficiently a company captures portions of sales dollars. GeoResources' gross margins have increased year over year for the last four quarters. Gross margins reflect the total sales revenue retained after costs. Here are GeoResources' reported margins for the last four quarters:

Quarter

Q3

Q2

Q1

Q4

Gross Margin

71.0%

72.1%

73.6%

69.2%

Operating Margin

43.4%

46.8%

37.7%

30.1%

Net Margin

26.0%

29.2%

22.9%

20.0%

One final thing: If you want to keep tabs on GeoResources' movements, and for more analysis on the company, make sure you add it to your Watchlist.

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Earnings estimates provided by Zacks.

At the time this article was published

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