Sanchez Energy Increases Sales but Misses Estimates on Earnings

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Sanchez Energy (NYS: SN) reported earnings on May 7. Here are the numbers you need to know.

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

Compared to the prior-year quarter, revenue increased significantly. Non-GAAP earnings per share grew significantly. GAAP loss per share contracted.


Gross margins dropped, operating margins increased, net margins increased.

Revenue details
Sanchez Energy logged revenue of $30.8 million. The 10 analysts polled by S&P Capital IQ foresaw net sales of $30.3 million on the same basis. GAAP reported sales were much higher than the prior-year quarter's $7.6 million.

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 $0.13. The 13 earnings estimates compiled by S&P Capital IQ predicted $0.16 per share. Non-GAAP EPS of $0.13 for Q1 were 225% higher than the prior-year quarter's $0.04 per share. GAAP EPS were -$0.06 for Q1 versus -$0.09 per share for the prior-year quarter.

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 83.5%, 120 basis points worse than the prior-year quarter. Operating margin was 5.6%, much better than the prior-year quarter. Net margin was -0.2%, much better than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $59.2 million. On the bottom line, the average EPS estimate is $0.29.

Next year's average estimate for revenue is $274.3 million. The average EPS estimate is $1.32.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 23 members out of 24 rating the stock outperform, and one members rating it underperform. Among six CAPS All-Star picks (recommendations by the highest-ranked CAPS members), six give Sanchez 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 Sanchez Energy is buy, with an average price target of $26.50.

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The article Sanchez Energy Increases Sales but Misses Estimates on Earnings originally appeared on Fool.com.

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. The Motley Fool owns shares of Smith & Nephew. 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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