Abraxas Petroleum Increases Sales but Misses Estimates on Earnings

Seth Jayson, The Motley Fool
Updated

Abraxas Petroleum (NAS: AXAS) reported earnings on May 9. Here are the numbers you need to know.

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

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


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

Revenue details
Abraxas Petroleum recorded revenue of $16.4 million. The seven analysts polled by S&P Capital IQ predicted net sales of $18.5 million on the same basis. GAAP reported sales were 17% higher than the prior-year quarter's $14.0 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 $0.02. The five earnings estimates compiled by S&P Capital IQ averaged $0.06 per share. GAAP EPS were $0.01 for Q1 versus -$0.12 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 54.7%, 640 basis points worse than the prior-year quarter. Operating margin was 13.6%, 7,480 basis points better than the prior-year quarter. Net margin was 5.0%, 7,630 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $18.3 million. On the bottom line, the average EPS estimate is $0.02.

Next year's average estimate for revenue is $80.4 million. The average EPS estimate is $0.10.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 736 members out of 763 rating the stock outperform, and 29 members rating it underperform. Among 108 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 102 give Abraxas Petroleum a green thumbs-up, and six give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Abraxas Petroleum is buy, with an average price target of $5.43.

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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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