Pioneer Southwest Energy Partners Beats on the Top Line

Seth Jayson, The Motley Fool
Updated

Pioneer Southwest Energy Partners (NYS: PSE) reported earnings on July 31. Here are the numbers you need to know.

The 10-second takeaway
 For the quarter ended June 30 (Q2), Pioneer Southwest Energy Partners crushed expectations on revenues and beat expectations on earnings per share.

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


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

Revenue details
 Pioneer Southwest Energy Partners logged revenue of $59.5 million. The three analysts polled by S&P Capital IQ predicted revenue of $47.5 million on the same basis. GAAP reported sales were 40% higher than the prior-year quarter's $42.6 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.

EPS details
 EPS came in at $0.57. The seven earnings estimates compiled by S&P Capital IQ predicted $0.52 per share. Non-GAAP EPS of $0.57 for Q2 were 21% higher than the prior-year quarter's $0.47 per share. GAAP EPS of $0.83 for Q2 were 54% lower than the prior-year quarter's $1.82 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.

Margin details
 For the quarter, gross margin was 69.3%, 470 basis points better than the prior-year quarter. Operating margin was 52.5%, much worse than the prior-year quarter. Net margin was 50.3%, much worse than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
 Next quarter's average estimate for revenue is $49.4 million. On the bottom line, the average EPS estimate is $0.56.

Next year's average estimate for revenue is $194.5 million. The average EPS estimate is $2.11.

Investor sentiment
 The stock has a four-star rating (out of five) at Motley Fool CAPS, with 166 members out of 177 rating the stock outperform, and 11 members rating it underperform. Among 55 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 51 give Pioneer Southwest Energy Partners a green thumbs-up, and four give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Pioneer Southwest Energy Partners is hold, with an average price target of $29.70.

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The article Pioneer Southwest Energy Partners Beats on the Top Line 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. 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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