Linn Energy Whiffs on Revenues

Linn Energy (NAS: LINE) reported earnings on June 4. Here are the numbers you need to know.

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

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

Margins dropped across the board.

Revenue details
Linn Energy booked revenue of $369.1 million. The 11 analysts polled by S&P Capital IQ looked for a top line of $583.8 million on the same basis. GAAP reported sales were 36% higher than the prior-year quarter's $352.1 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 $0.16. The 13 earnings estimates compiled by S&P Capital IQ anticipated $0.25 per share. Non-GAAP EPS of $0.16 for Q1 were 36% lower than the prior-year quarter's $0.25 per share. GAAP EPS were -$0.96 for Q1 versus -$0.04 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 74.2%, 230 basis points worse than the prior-year quarter. Operating margin was -8.6%, much worse than the prior-year quarter. Net margin was -46.5%, much worse than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $582.0 million. On the bottom line, the average EPS estimate is $0.26.

Next year's average estimate for revenue is $2.74 billion. The average EPS estimate is $1.24.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,059 members out of 1,095 rating the stock outperform, and 36 members rating it underperform. Among 254 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 246 give Linn 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 Linn Energy is outperform, with an average price target of $44.50.

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The article Linn Energy Whiffs on Revenues 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. TMFDisclosureHere

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