C&J Energy Services Misses Where it Counts

Seth Jayson, The Motley Fool
Updated

C&J Energy Services (NYS: CJES) reported earnings on Feb. 13. Here are the numbers you need to know.

The 10-second takeaway
 For the quarter ended Dec. 31 (Q4), C&J Energy Services 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 dropped significantly.


Margins dropped across the board.

Revenue details
 C&J Energy Services logged revenue of $286.3 million. The seven analysts polled by S&P Capital IQ looked for sales of $284.2 million on the same basis. GAAP reported sales were 30% higher than the prior-year quarter's $220.1 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 $0.65. The nine earnings estimates compiled by S&P Capital IQ averaged $0.68 per share. GAAP EPS of $0.56 for Q4 were 44% lower than the prior-year quarter's $1.00 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 36.7%, 670 basis points worse than the prior-year quarter. Operating margin was 17.3%, 1,720 basis points worse than the prior-year quarter. Net margin was 10.6%, 1,370 basis points worse than the prior-year quarter.

Looking ahead
 Next quarter's average estimate for revenue is $301.7 million. On the bottom line, the average EPS estimate is $0.70.

Next year's average estimate for revenue is $1.26 billion. The average EPS estimate is $2.91.

Investor sentiment
 The stock has a five-star rating (out of five) at Motley Fool CAPS, with 214 members out of 219 rating the stock outperform, and five members rating it underperform. Among 65 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 63 give C&J Energy Services a green thumbs-up, and two give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on C&J Energy Services is outperform, with an average price target of $24.29.

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The article C&J Energy Services Misses Where it Counts 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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