Petroleum Development Crushes Earnings Estimates
Petroleum Development (NAS: PETD) reported earnings on May 10. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended March 31 (Q1), Petroleum Development missed slightly on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly and GAAP earnings per share expanded.
Margins increased across the board.
Petroleum Development reported revenue of $100.3 million. The nine analysts polled by S&P Capital IQ foresaw revenue of $102.2 million on the same basis. GAAP reported sales were 24% higher than the prior-year quarter's $81.0 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.62. The 13 earnings estimates compiled by S&P Capital IQ averaged $0.23 per share. GAAP EPS were $0.67 for Q1 against -$0.85 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 69.4%, 1,390 basis points better than the prior-year quarter. Operating margin was 12.4%, 4,420 basis points better than the prior-year quarter. Net margin was 15.8%, 4,040 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $99.4 million. On the bottom line, the average EPS estimate is $0.17.
Next year's average estimate for revenue is $425.4 million. The average EPS estimate is $1.01.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 278 members out of 304 rating the stock outperform, and 26 members rating it underperform. Among 75 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 70 give Petroleum Development a green thumbs-up, and five give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Petroleum Development is outperform, with an average price target of $44.89.
Over the decades, small-cap stocks, like Petroleum Development have provided market-beating returns, provided they're value priced and have solid businesses. Read about a pair of companies with a lock on their markets in "Too Small to Fail: Two Small Caps the Government Won't Let Go Broke." Click here for instant access to this free report.
- Add Petroleum Development to My Watchlist.
At the time this article 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.