Rex Energy Increases Sales but Misses Revenue Estimate

Seth Jayson, The Motley Fool
Updated

Rex Energy (NAS: REXX) reported earnings on May 1. Here are the numbers you need to know.

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

Compared to the prior-year quarter, revenue increased significantly and GAAP loss per share contracted.


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

Revenue details
 Rex Energy tallied revenue of $33.8 million. The five analysts polled by S&P Capital IQ looked for a top line of $35.8 million on the same basis. GAAP reported sales were 44% higher than the prior-year quarter's $23.4 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 $0.11. The 10 earnings estimates compiled by S&P Capital IQ predicted $0.08 per share. GAAP EPS were -$0.03 for Q1 compared to -$0.17 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 63.6%, 570 basis points worse than the prior-year quarter. Operating margin was 10.2%, 6,020 basis points better than the prior-year quarter. Net margin was -4.8%, 2,720 basis points better than the prior-year quarter.

Looking ahead
 Next quarter's average estimate for revenue is $37.3 million. On the bottom line, the average EPS estimate is $0.06.

Next year's average estimate for revenue is $164.6 million. The average EPS estimate is $0.34.

Investor sentiment
 The stock has a three-star rating (out of five) at Motley Fool CAPS, with 343 members out of 362 rating the stock outperform, and 19 members rating it underperform. Among 60 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 55 give Rex Energy 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 Rex Energy is outperform, with an average price target of $15.35.

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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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