Energen Beats on EPS but GAAP Results Lag

Seth Jayson, The Motley Fool
Updated

Energen (NYS: EGN) reported earnings on May 10. Here are the numbers you need to know.

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

Compared to the prior-year quarter, revenue dropped and GAAP earnings per share dropped significantly.


Gross margins improved, operating margins contracted, and net margins shrank.

Revenue details
Energen notched revenue of $418.4 million. The five analysts polled by S&P Capital IQ expected to see sales of $433.2 million on the same basis. GAAP reported sales were 14% lower than the prior-year quarter's $486.4 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 $1.33. The 14 earnings estimates compiled by S&P Capital IQ predicted $1.17 per share. GAAP EPS of $0.79 for Q1 were 39% lower than the prior-year quarter's $1.30 per share.

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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 59.8%, 810 basis points better than the prior-year quarter. Operating margin was 30.0%, 290 basis points worse than the prior-year quarter. Net margin was 13.7%, 570 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $351.1 million. On the bottom line, the average EPS estimate is $0.62.

Next year's average estimate for revenue is $1.57 billion. The average EPS estimate is $3.53.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 265 members out of 275 rating the stock outperform, and 10 members rating it underperform. Among 65 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 63 give Energen a green thumbs-up, and two give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Energen is outperform, with an average price target of $61.83.

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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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