The Gory Details of Bill Barrett's Earnings Miss

Bill Barrett (NYS: BBG) reported earnings on Feb. 23. Here are the numbers you need to know.

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

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

Margins dropped across the board.

Revenue details
Bill Barrett logged revenue of $208.7 million. The nine analysts polled by S&P Capital IQ foresaw revenue of $201.1 million on the same basis. GAAP reported sales were 19% higher than the prior-year quarter's $174.1 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 $0.35. The 12 earnings estimates compiled by S&P Capital IQ predicted $0.54 per share on the same basis. GAAP EPS were -$0.81 for Q3 against -$0.16 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 75.3%, 310 basis points worse than the prior-year quarter. Operating margin was -18.7%, 2,060 basis points worse than the prior-year quarter. Net margin was -18.3%, 1,410 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $196.8 million. On the bottom line, the average EPS estimate is $0.38.

Next year's average estimate for revenue is $757.3 million. The average EPS estimate is $1.72.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 160 members out of 175 rating the stock outperform, and 15 members rating it underperform. Among 54 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 52 give Bill Barrett 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 Bill Barrett is outperform, with an average price target of $52.38.

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At the time this article was published

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