CVR Energy's Earnings Beat Last Year's by 461%

Seth Jayson, The Motley Fool
Updated

CVR Energy (NYS: CVI) reported earnings on Feb. 22. Here are the numbers you need to know.

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

Compared to the prior-year quarter, revenue improved significantly and GAAP earnings per share grew significantly.

Margins grew across the board.

Revenue details
CVR Energy reported revenue of $1.35 billion. The four analysts polled by S&P Capital IQ wanted to see revenue of $1.32 billion on the same basis. GAAP reported sales were 92% lower than the prior-year quarter's $1.15 billion.

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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 $1.57. The four earnings estimates compiled by S&P Capital IQ forecast $1.70 per share on the same basis. GAAP EPS of $0.48 for Q3 were much higher than the prior-year quarter's $0.02 per share.

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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 59.5%, 5,070 basis points better than the prior-year quarter. Operating margin was 48.6%, 4,630 basis points better than the prior-year quarter. Net margin was 47.0%, 4,680 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $1.02 billion. On the bottom line, the average EPS estimate is $0.38.

Next year's average estimate for revenue is $4.99 billion. The average EPS estimate is $3.94.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 368 members out of 387 rating the stock outperform, and 19 members rating it underperform. Among 105 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 102 give CVR Energy a green thumbs-up, and three give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on CVR Energy is buy, with an average price target of $31.50.

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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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