The Gory Details of Basic Energy Services' Earnings Miss

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Basic Energy Services (NYS: BAS) reported earnings on April 18. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), Basic Energy Services beat expectations on revenue and whiffed on earnings per share.

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


Gross margin contracted, operating margin grew, and net margin increased.

Revenue details
Basic Energy Services logged revenue of $370.9 million. The nine analysts polled by S&P Capital IQ wanted to see revenue of $361.1 million on the same basis. GAAP reported sales were 51% higher than the prior-year quarter's $246.1 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 $0.50. The 12 earnings estimates compiled by S&P Capital IQ forecast $0.56 per share on the same basis. GAAP EPS were $0.47 for Q1 against -$0.46 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 36.0%, 60 basis points worse than the prior-year quarter. Operating margin was 13.0%, 260 basis points better than the prior-year quarter. Net margin was 5.3%, 1,280 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $373.0 million. On the bottom line, the average EPS estimate is $0.60.

Next year's average estimate for revenue is $1.50 billion. The average EPS estimate is $2.44.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 307 members out of 331 rating the stock outperform, and 24 members rating it underperform. Among 81 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 74 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 $26.77.

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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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