Oasis Petroleum Increases Sales but Misses Estimates on Earnings

Seth Jayson, The Motley Fool
Updated

Oasis Petroleum (NYS: OAS) reported earnings on May 7. Here are the numbers you need to know.

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

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


Margins expanded across the board.

Revenue details
Oasis Petroleum chalked up revenue of $138.6 million. The 14 analysts polled by S&P Capital IQ anticipated sales of $125.7 million on the same basis. GAAP reported sales were much higher than the prior-year quarter's $58.7 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 $0.30. The 20 earnings estimates compiled by S&P Capital IQ predicted $0.31 per share. GAAP EPS were $0.18 for Q1 against -$0.07 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 81.1%, 160 basis points better than the prior-year quarter. Operating margin was 42.0%, 5,240 basis points better than the prior-year quarter. Net margin was 11.9%, 2,360 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $142.7 million. On the bottom line, the average EPS estimate is $0.35.

Next year's average estimate for revenue is $632.5 million. The average EPS estimate is $1.66.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 121 members out of 124 rating the stock outperform, and three members rating it underperform. Among 25 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 25 give Oasis Petroleum a green thumbs-up, and give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Oasis Petroleum is outperform, with an average price target of $37.06.

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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. 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.

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