Laredo Petroleum Holdings Beats Expectations But Takes A Step Back Anyway
Laredo Petroleum Holdings (NYS: LPI) reported earnings on March 12. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Laredo Petroleum Holdings missed estimates on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased. Non-GAAP earnings per share contracted significantly. GAAP earnings per share expanded.
Gross margins contracted, operating margins grew, net margins grew.
Laredo Petroleum Holdings logged revenue of $152.4 million. The nine analysts polled by S&P Capital IQ hoped for revenue of $157.7 million on the same basis. GAAP reported sales were 9.7% higher than the prior-year quarter's $139.0 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.11. The 11 earnings estimates compiled by S&P Capital IQ predicted $0.10 per share. Non-GAAP EPS of $0.11 for Q4 were 31% lower than the prior-year quarter's $0.16 per share. GAAP EPS were $0.09 for Q4 compared to -$0.32 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 80.4%, 420 basis points worse than the prior-year quarter. Operating margin was 21.5%, 880 basis points better than the prior-year quarter. Net margin was 7.8%, much better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $172.2 million. On the bottom line, the average EPS estimate is $0.11.
Next year's average estimate for revenue is $736.3 million. The average EPS estimate is $0.54.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 14 members out of 14 rating the stock outperform, and members rating it underperform. Among six CAPS All-Star picks (recommendations by the highest-ranked CAPS members), six give Laredo Petroleum Holdings a green thumbs-up, and give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Laredo Petroleum Holdings is outperform, with an average price target of $26.11.
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The article Laredo Petroleum Holdings Beats Expectations But Takes A Step Back Anyway 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.