Forest Oil Whiffs on Revenue
Forest Oil (NYS: FST) reported earnings on April 30. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended March 31 (Q1), Forest Oil whiffed on revenue and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue shrank significantly and GAAP loss per share improved.
Gross margin dropped, operating margin increased, and net margin dropped.
Forest Oil chalked up revenue of $158.9 million. The 11 analysts polled by S&P Capital IQ foresaw a top line of $190.1 million on the same basis. GAAP reported sales were 22% lower than the prior-year quarter's $202.6 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.11. The 17 earnings estimates compiled by S&P Capital IQ forecast $0.20 per share. GAAP EPS were -$0.29 for Q1 compared to -$0.03 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 73.1%, 160 basis points worse than the prior-year quarter. Operating margin was 18.0%, 590 basis points better than the prior-year quarter. Net margin was -20.6%, 1,900 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $194.3 million. On the bottom line, the average EPS estimate is $0.20.
Next year's average estimate for revenue is $793.5 million. The average EPS estimate is $0.89.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 333 members out of 349 rating the stock outperform, and 16 members rating it underperform. Among 81 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 77 give Forest Oil a green thumbs-up, and four 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 $17.71.
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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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