Petroleum Development Crushes Earnings Estimates

Seth Jayson, The Motley Fool
Updated

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.

Revenue details
 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.

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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 $0.62. 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.

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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 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.

Looking ahead
 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.

Investor sentiment
 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.

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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 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.

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