Gran Tierra Energy Beats on Both Top and Bottom Lines

Seth Jayson, The Motley Fool
Updated

Gran Tierra Energy (AMEX: GTE) reported earnings on May 6. Here are the numbers you need to know.

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

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


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

Revenue details
 Gran Tierra Energy booked revenue of $204.8 million. The five analysts polled by S&P Capital IQ wanted to see sales of $188.4 million on the same basis. GAAP reported sales were 32% higher than the prior-year quarter's $155.2 million.

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 $0.19. The five earnings estimates compiled by S&P Capital IQ predicted $0.15 per share. Non-GAAP EPS of $0.19 for Q1 were much higher than the prior-year quarter's $0.00 per share. GAAP EPS of $0.20 for Q1 were much higher than the prior-year quarter's $0.00 per share.

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 80.0%, 420 basis points worse than the prior-year quarter. Operating margin was 46.0%, 210 basis points worse than the prior-year quarter. Net margin was 28.2%, much better than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
 Next quarter's average estimate for revenue is $181.3 million. On the bottom line, the average EPS estimate is $0.14.

Next year's average estimate for revenue is $728.9 million. The average EPS estimate is $0.61.

Investor sentiment
 The stock has a three-star rating (out of five) at Motley Fool CAPS, with 356 members out of 379 rating the stock outperform, and 23 members rating it underperform. Among 57 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 49 give Gran Tierra Energy a green thumbs-up, and eight give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Gran Tierra Energy is outperform, with an average price target of $8.06.

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The article Gran Tierra Energy Beats on Both Top and Bottom Lines 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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