Energen Beats on EPS but GAAP Results Lag

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Energen (NYS: EGN) reported earnings on May 10. Here are the numbers you need to know.

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

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


Gross margins improved, operating margins contracted, and net margins shrank.

Revenue details
Energen notched revenue of $418.4 million. The five analysts polled by S&P Capital IQ expected to see sales of $433.2 million on the same basis. GAAP reported sales were 14% lower than the prior-year quarter's $486.4 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 $1.33. The 14 earnings estimates compiled by S&P Capital IQ predicted $1.17 per share. GAAP EPS of $0.79 for Q1 were 39% lower than the prior-year quarter's $1.30 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 59.8%, 810 basis points better than the prior-year quarter. Operating margin was 30.0%, 290 basis points worse than the prior-year quarter. Net margin was 13.7%, 570 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $351.1 million. On the bottom line, the average EPS estimate is $0.62.

Next year's average estimate for revenue is $1.57 billion. The average EPS estimate is $3.53.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 265 members out of 275 rating the stock outperform, and 10 members rating it underperform. Among 65 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 63 give Energen a green thumbs-up, and two give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Energen is outperform, with an average price target of $61.83.

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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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