TransGlobe Energy Misses on the Top and Bottom Lines

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TransGlobe Energy (NAS: TGA) reported earnings on May 7. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), TransGlobe Energy missed estimates on both revenue and earnings per share.

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


Gross margin dropped, while operating margin and net margin grew.

Revenue details
TransGlobe Energy reported revenue of $77.2 million. The two analysts polled by S&P Capital IQ wanted to see net sales of $79.6 million on the same basis. GAAP-reported sales were 46% higher than the prior-year quarter's $52.9 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
EPS came in at $0.15. The two earnings estimates compiled by S&P Capital IQ anticipated $0.33 per share. GAAP EPS of $0.15 for Q1 were 275% higher than the prior-year quarter's $0.04 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 84.5%, 120 basis points worse than the prior-year quarter. Operating margin was 59.9%, 2,050 basis points better than the prior-year quarter. Net margin was 14.2%, 870 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $82.2 million. On the bottom line, the average EPS estimate is $0.35.

Next year's average estimate for revenue is $448.5 million. The average EPS estimate is $1.60.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 500 members rating the stock outperform and 24 members rating it underperform. Among 106 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 106 give TransGlobe Energy a green thumbs-up, and give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on TransGlobe Energy is outperform, with an average price target of $15.25.

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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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