The Gory Details on Endeavour International's Double Miss

Seth Jayson, The Motley Fool
Updated

Endeavour International (NYS: END) reported earnings on May 2. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), Endeavour International missed estimates on revenues and missed expectations on earnings per share.

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


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

Revenue details
Endeavour International logged revenue of $15.2 million. The six analysts polled by S&P Capital IQ expected sales of $15.6 million on the same basis. GAAP reported sales were 7.5% higher than the prior-year quarter's $14.1 million.

anImage
anImage

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 -$0.42. The nine earnings estimates compiled by S&P Capital IQ averaged -$0.27 per share. GAAP EPS were -$0.94 for Q1 versus -$0.30 per share for the prior-year quarter.

anImage
anImage

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 67.7%, 340 basis points better than the prior-year quarter. Operating margin was -123.3%, 14,100 basis points worse than the prior-year quarter. Net margin was -232.5%, 17,960 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $104.7 million. On the bottom line, the average EPS estimate is $0.29.

Next year's average estimate for revenue is $406.3 million. The average EPS estimate is $1.33.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 176 members out of 187 rating the stock outperform, and 11 members rating it underperform. Among 33 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 26 give Endeavour International a green thumbs-up, and seven give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Endeavour International is outperform, with an average price target of $16.25.

How did Endeavour International treat you during the oil spike in 2008 and the subsequent bust? More importantly, what are you doing to prepare for the next spike that some experts believe another spike may be just around the corner? Prepare yourself with a well-positioned energy stock we profile in "The Only Energy Stock You'll Ever Need." Get instant access to this free report.

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. He is the 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 don't 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.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Advertisement