Clayton Williams Energy Goes Negative

Seth Jayson, The Motley Fool
Updated

Clayton Williams Energy (NAS: CWEI) reported earnings on July 25. Here are the numbers you need to know.

The 10-second takeaway
 For the quarter ended June 30 (Q2), Clayton Williams Energy beat expectations on revenues and missed expectations on earnings per share.

Compared to the prior-year quarter, revenue contracted. GAAP earnings per share shrank to a loss.


Gross margins increased, operating margins shrank, net margins dropped.

Revenue details
 Clayton Williams Energy logged revenue of $98.9 million. The five analysts polled by S&P Capital IQ expected revenue of $92.7 million on the same basis. GAAP reported sales were 5.2% lower than the prior-year quarter's $104.3 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 -$0.08. The five earnings estimates compiled by S&P Capital IQ anticipated $0.43 per share. GAAP EPS were -$0.08 for Q2 versus $2.70 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 68.6%, 400 basis points better than the prior-year quarter. Operating margin was 24.8%, much worse than the prior-year quarter. Net margin was -1.0%, much worse than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
 Next quarter's average estimate for revenue is $93.5 million. On the bottom line, the average EPS estimate is $0.55.

Next year's average estimate for revenue is $384.0 million. The average EPS estimate is -$1.90.

Investor sentiment
 The stock has a three-star rating (out of five) at Motley Fool CAPS, with 205 members out of 226 rating the stock outperform, and 21 members rating it underperform. Among 51 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 44 give Clayton Williams Energy a green thumbs-up, and seven give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Clayton Williams Energy is outperform, with an average price target of $53.83.

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The article Clayton Williams Energy Goes Negative 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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