Pioneer Southwest Energy Partners Goes Red

Seth Jayson, The Motley Fool
Updated

Pioneer Southwest Energy Partners (NYS: PSE) reported earnings on Feb. 6. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Pioneer Southwest Energy Partners beat expectations on revenues and missed expectations on earnings per share.

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

Gross margins expanded, operating margins dropped, and net margins contracted.

Revenue details
Pioneer Southwest Energy Partners reported revenue of $53.9 million. The five analysts polled by S&P Capital IQ expected revenue of $50.2 million. GAAP sales were 9.9% higher than the prior-year quarter's $49.0 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
Non-GAAP EPS came in at $0.77. The five earnings estimates compiled by S&P Capital IQ predicted $0.86 per share on the same basis. GAAP EPS were -$0.21 for Q4 against $0.14 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 75.2%, 230 basis points better than the prior-year quarter. Operating margin was -12.1%, 2,250 basis points worse than the prior-year quarter. Net margin was -12.8%, 2,230 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $44.7 million. On the bottom line, the average EPS estimate is $0.66.

Next year's average estimate for revenue is $189.5 million. The average EPS estimate is $2.78.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 162 members rating the stock outperform and nine members rating it underperform. Among 70 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 68 give Pioneer Southwest Energy Partners 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 Pioneer Southwest Energy Partners is hold, with an average price target of $28.75.

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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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