BP Misses Where it Counts

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BP (NYS: BP) reported earnings on May 1. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), BP beat expectations on revenues and missed estimates on earnings per share.

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


Margins shrank across the board.

Revenue details
BP recorded revenue of $94.04 billion. The three analysts polled by S&P Capital IQ foresaw a top line of $88.56 billion on the same basis. GAAP-reported sales were 12% higher than the prior-year quarter's $85.33 billion.

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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
EPS came in at $1.50. The eight earnings estimates compiled by S&P Capital IQ forecast $1.62 per share. GAAP EPS of $0.31 for Q1 were 18% lower than the prior-year quarter's $0.38 per share.

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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 15.2%, 270 basis points worse than the prior-year quarter. Operating margin was 8.3%, 180 basis points worse than the prior-year quarter. Net margin was 6.2%, 210 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $94.26 billion. On the bottom line, the average EPS estimate is $1.81.

Next year's average estimate for revenue is $363.84 billion. The average EPS estimate is $6.73.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 4,905 members rating the stock outperform and 334 members rating it underperform. Among 1,050 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 998 give BP a green thumbs-up, and 52 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on BP is outperform, with an average price target of $52.39.

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At the time this article was published Seth Jayson owned shares of the following at the time of publication: BP. 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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