The Gory Details of Forest Oil's Earnings Miss
Forest Oil (NYS: FST) reported earnings on Feb. 21. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Forest Oil missed estimates on revenue and whiffed on earnings per share.
Compared to the prior-year quarter, revenue dropped significantly and GAAP earnings per share increased significantly.
Gross margin shrank, operating margin improved, and net margin expanded.
Forest Oil booked revenue of $176.7 million. The 12 analysts polled by S&P Capital IQ looked for a top line of $190.3 million on the same basis. GAAP reported sales were 17% lower than the prior-year quarter's $213.9 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.18. The 18 earnings estimates compiled by S&P Capital IQ forecast $0.27 per share on the same basis. GAAP EPS of $0.17 for Q4 were 21% higher than the prior-year quarter's $0.14 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 77.1%, 140 basis points worse than the prior-year quarter. Operating margin was 38.7%, 1,700 basis points better than the prior-year quarter. Net margin was 11.0%, 340 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $187.0 million. On the bottom line, the average EPS estimate is $0.22.
Next year's average estimate for revenue is $795.1 million. The average EPS estimate is $1.02.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 339 members out of 354 rating the stock outperform, and 15 members rating it underperform. Among 98 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 92 give Forest Oil a green thumbs-up, and six give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Forest Oil is outperform, with an average price target of $19.59.
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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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