Advantage Oil & Gas Whiffs on Revenues

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Advantage Oil & Gas (NYS: AAV) reported earnings on May 11. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), Advantage Oil & Gas whiffed on revenues and missed expectations on earnings per share.

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


Margins shrank across the board.

Revenue details
Advantage Oil & Gas chalked up revenue of $33.5 million. The two analysts polled by S&P Capital IQ expected to see revenue of $65.6 million on the same basis. GAAP reported sales were 8.8% lower than the prior-year quarter's $70.2 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 -$0.06. The two earnings estimates compiled by S&P Capital IQ forecast $0.00 per share. GAAP EPS were -$0.06 for Q1 versus -$0.04 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 64.1%, 290 basis points worse than the prior-year quarter. Operating margin was -5.9%, 810 basis points worse than the prior-year quarter. Net margin was -16.5%, 810 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $69.7 million. On the bottom line, the average EPS estimate is -$0.11.

Next year's average estimate for revenue is $127.8 million. The average EPS estimate is -$0.42.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 585 members out of 611 rating the stock outperform, and 26 members rating it underperform. Among 94 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 91 give Advantage Oil & Gas a green thumbs-up, and three give it a red thumbs-down.

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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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