Warren Resources Outruns Estimates Again

Seth Jayson, The Motley Fool
Updated

Warren Resources (NAS: WRES) reported earnings on Mar. 6. Here are the numbers you need to know.

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

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

Margins improved across the board.

Revenue details
Warren Resources reported revenue of $27.3 million. The four analysts polled by S&P Capital IQ foresaw revenue of $26.0 million on the same basis. GAAP reported sales were 21% higher than the prior-year quarter's $22.6 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 $0.08. The six earnings estimates compiled by S&P Capital IQ predicted $0.07 per share on the same basis. GAAP EPS of $0.04 for Q4 were 300% higher than the prior-year quarter's $0.01 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 76.9%, 880 basis points better than the prior-year quarter. Operating margin was 25.9%, 2,070 basis points better than the prior-year quarter. Net margin was 11.0%, 960 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $28.2 million. On the bottom line, the average EPS estimate is $0.07.

Next year's average estimate for revenue is $130.2 million. The average EPS estimate is $0.39.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 310 members out of 325 rating the stock outperform, and 15 members rating it underperform. Among 88 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 85 give Warren Resources 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 Warren Resources is outperform, with an average price target of $4.50.

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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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