Will These Numbers From Legacy Reserves Be Good Enough for You?

Seth Jayson, The Motley Fool
Updated

Legacy Reserves (Nasdaq: LGCY) is expected to report Q2 earnings on Aug. 1. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Legacy Reserves' revenue will wane 5.6% and EPS will contract 14.5%.

The average estimate for revenue is $87.7 million. On the bottom line, the average EPS estimate is $0.47.

Revenue details
Last quarter, Legacy Reserves reported revenue of $92.6 million. GAAP reported sales were 27% higher than the prior-year quarter's $72.8 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, non-GAAP EPS came in at $0.55. GAAP EPS were $0.15 for Q1 against -$1.39 per share for the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 69.6%, 510 basis points better than the prior-year quarter. Operating margin was 9.6%, 8,900 basis points better than the prior-year quarter. Net margin was 8.0%, 9,100 basis points better than the prior-year quarter.

Looking ahead
The full year's average estimate for revenue is $363.6 million. The average EPS estimate is $1.97.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 262 members out of 270 rating the stock outperform, and eight members rating it underperform. Among 80 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 79 give Legacy Reserves a green thumbs-up, and one gives it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Legacy Reserves is buy, with an average price target of $33.43.

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