Energen Beats Up on Analysts Yet Again

Seth Jayson, The Motley Fool
Updated

Energen (NYS: EGN) reported earnings on Jan. 25. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Energen whiffed on revenues and beat slightly on earnings per share.

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

Margins dropped across the board.

Revenue details
Energen chalked up revenue of $288.1 million. The three analysts polled by S&P Capital IQ expected revenue of $382.9 million. Sales were 16% lower than the prior-year quarter's $374.1 million.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.

EPS details
Non-GAAP EPS came in at $0.98. The 11 earnings estimates compiled by S&P Capital IQ forecast $0.97 per share on the same basis. GAAP EPS of $0.20 for Q4 were 82% lower than the prior-year quarter's $1.12 per share.

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Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 48.7%, 1,820 basis points worse than the prior-year quarter. Operating margin was 11.0%, 2,850 basis points worse than the prior-year quarter. Net margin was 5%, 1,840 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $321 million. On the bottom line, the average EPS estimate is $1.28.

Next year's average estimate for revenue is $1.66 billion. The average EPS estimate is $3.96.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 260 members out of 269 rating the stock outperform, and nine members rating it underperform. Among 79 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 78 give Energen a green thumbs-up, and one 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 $67.60.

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At the time thisarticle 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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