The Gory Details on Crimson Exploration's Double Fumble

Seth Jayson, The Motley Fool
Updated

Crimson Exploration (NAS: CXPO) reported earnings on May 9. Here are the numbers you need to know.

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

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


Gross margins contracted, operating margins expanded, net margins improved.

Revenue details
Crimson Exploration reported revenue of $26.7 million. The four analysts polled by S&P Capital IQ expected revenue of $27.5 million on the same basis. GAAP reported sales were 3.4% lower than the prior-year quarter's $27.6 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 -$0.08. The five earnings estimates compiled by S&P Capital IQ predicted -$0.06 per share. GAAP EPS were -$0.10 for Q1 compared to -$0.19 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 77.3%, 130 basis points worse than the prior-year quarter. Operating margin was 1.6%, 2,220 basis points better than the prior-year quarter. Net margin was -16.5%, 1,440 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $32.3 million. On the bottom line, the average EPS estimate is -$0.02.

Next year's average estimate for revenue is $132.8 million. The average EPS estimate is -$0.01.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 107 members out of 111 rating the stock outperform, and four members rating it underperform. Among 17 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 16 give Crimson Exploration a green thumbs-up, and one give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Crimson Exploration is outperform, with an average price target of $4.27.

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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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