Callon Petroleum Increases Sales but Misses Estimates on Earnings

Seth Jayson, The Motley Fool
Updated

Callon Petroleum (NYS: CPE) reported earnings on May 7. Here are the numbers you need to know.

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

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


Margins dropped across the board.

Revenue details
Callon Petroleum recorded revenue of $29.3 million. The four analysts polled by S&P Capital IQ predicted revenue of $29.5 million on the same basis. GAAP reported sales were 15% higher than the prior-year quarter's $25.4 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 $0.01. The seven earnings estimates compiled by S&P Capital IQ predicted $0.05 per share. GAAP EPS of $0.01 for Q1 were 92% lower than the prior-year quarter's $0.12 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 70.0%, 1,020 basis points worse than the prior-year quarter. Operating margin was 9.3%, 1,340 basis points worse than the prior-year quarter. Net margin was 1.7%, 1,470 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $29.1 million. On the bottom line, the average EPS estimate is $0.02.

Next year's average estimate for revenue is $131.8 million. The average EPS estimate is $0.22.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 501 members out of 527 rating the stock outperform, and 26 members rating it underperform. Among 54 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 49 give Callon Petroleum 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 Callon Petroleum is buy, with an average price target of $10.20.

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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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