Pioneer Southwest Energy Partners Meets on Revenues, Misses on EPS

Seth Jayson, The Motley Fool
Updated

Pioneer Southwest Energy Partners (NYS: PSE) reported earnings May 2. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), Pioneer Southwest Energy Partners met expectations on revenues and missed estimates on earnings per share.

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


Gross margins dropped, operating margins expanded, net margins grew.

Revenue details
Pioneer Southwest Energy Partners tallied revenue of $50.7 million. The one analyst polled by S&P Capital IQ predicted revenue of $50.7 million on the same basis. GAAP reported sales were 1.9% higher than the prior-year quarter's $49.8 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
EPS came in at $0.62. The five earnings estimates compiled by S&P Capital IQ predicted $0.64 per share. GAAP EPS were $0.38 for Q1 compared to -$0.38 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 70.9%, 380 basis points worse than the prior-year quarter. Operating margin was 27.7%, 5,290 basis points better than the prior-year quarter. Net margin was 26.8%, 5,240 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $44.7 million. On the bottom line, the average EPS estimate is $0.66.

Next year's average estimate for revenue is $187.0 million. The average EPS estimate is $2.71.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 174 members out of 182 rating the stock outperform, and eight members rating it underperform. Among 56 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 54 give Pioneer Southwest Energy Partners 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 Pioneer Southwest Energy Partners is hold, with an average price target of $28.25.

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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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