Talisman Energy Goes Red

Seth Jayson, The Motley Fool
Updated

Talisman Energy (TSX: TLM) reported earnings on May 1. Here are the numbers you need to know.

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

Compared to the prior-year quarter, revenue contracted significantly. Non-GAAP earnings per share dropped to a loss. GAAP earnings per share dropped to a loss.


Gross margins dropped, operating margins increased, net margins shrank.

Revenue details
 Talisman Energy reported revenue of $1.11 billion. The seven analysts polled by S&P Capital IQ anticipated a top line of $1.42 billion on the same basis. GAAP reported sales were 47% lower than the prior-year quarter's $2.12 billion.

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 -$0.06. The 14 earnings estimates compiled by S&P Capital IQ forecast $0.02 per share. Non-GAAP EPS were -$0.06 for Q1 versus $0.16 per share for the prior-year quarter. GAAP EPS were -$0.21 for Q1 against $0.25 per share for the prior-year quarter.

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 66.2%, 370 basis points worse than the prior-year quarter. Operating margin was 10.4%, much better than the prior-year quarter. Net margin was -18.9%, much worse than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
 Next quarter's average estimate for revenue is $1.44 billion. On the bottom line, the average EPS estimate is $0.04.

Next year's average estimate for revenue is $6.15 billion. The average EPS estimate is $0.24.

Investor sentiment
 The stock has a three-star rating (out of five) at Motley Fool CAPS, with 550 members out of 575 rating the stock outperform, and 25 members rating it underperform. Among 109 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 99 give Talisman Energy a green thumbs-up, and 10 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Talisman Energy is hold, with an average price target of $13.40.

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The article Talisman Energy Goes Red originally appeared on Fool.com.

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. The Motley Fool has no position in any of the stocks mentioned. 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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