Northern Oil and Gas Beats on Both Top and Bottom Lines

Seth Jayson, The Motley Fool
Updated

Northern Oil and Gas (AMEX: NOG) reported earnings on Feb. 28. Here are the numbers you need to know.

The 10-second takeaway
 For the quarter ended Dec. 31 (Q4), Northern Oil and Gas beat slightly on revenues and beat expectations on earnings per share.

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


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

Revenue details
 Northern Oil and Gas chalked up revenue of $84.7 million. The seven analysts polled by S&P Capital IQ expected a top line of $83.1 million on the same basis. GAAP reported sales were 53% higher than the prior-year quarter's $53.3 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 $0.34. The 12 earnings estimates compiled by S&P Capital IQ averaged $0.27 per share. Non-GAAP EPS of $0.34 for Q4 were 62% higher than the prior-year quarter's $0.21 per share. GAAP EPS were $0.31 for Q4 compared to -$0.03 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 78.6%, 520 basis points worse than the prior-year quarter. Operating margin was 40.9%, much better than the prior-year quarter. Net margin was 23.9%, much better than the prior-year quarter.

Looking ahead
 Next quarter's average estimate for revenue is $86.3 million. On the bottom line, the average EPS estimate is $0.26.

Next year's average estimate for revenue is $393.6 million. The average EPS estimate is $1.23.

Investor sentiment
 The stock has a two-star rating (out of five) at Motley Fool CAPS, with 584 members out of 645 rating the stock outperform, and 61 members rating it underperform. Among 98 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 80 give Northern Oil and Gas a green thumbs-up, and 18 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Northern Oil and Gas is outperform, with an average price target of $24.36.

Is Northern Oil and Gas the right energy stock for you? Read about a handful of timely, profit-producing plays on expensive crude in "3 Stocks for $100 Oil." Click here for instant access to this free report.

The article Northern Oil and Gas 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.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Advertisement