Talisman Energy Whiffs on Revenues

Seth Jayson, The Motley Fool
Updated

Talisman Energy (TSX: TLM) reported earnings on July 31. Here are the numbers you need to know.

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

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


Gross margins expanded, operating margins contracted, net margins contracted.

Revenue details
 Talisman Energy booked revenue of $1.16 billion. The six analysts polled by S&P Capital IQ anticipated a top line of $1.36 billion on the same basis. GAAP reported sales were 37% lower than the prior-year quarter's $1.87 billion.

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 -$0.03. The 13 earnings estimates compiled by S&P Capital IQ predicted $0.02 per share. Non-GAAP EPS were -$0.03 for Q2 compared to $0.07 per share for the prior-year quarter. GAAP EPS of $0.09 for Q2 were 53% lower than the prior-year quarter's $0.19 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 63.5%, 100 basis points better than the prior-year quarter. Operating margin was 2.3%, much worse than the prior-year quarter. Net margin was 8.2%, 230 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
 Next quarter's average estimate for revenue is $1.48 billion. On the bottom line, the average EPS estimate is $0.06.

Next year's average estimate for revenue is $5.85 billion. The average EPS estimate is $0.14.

Investor sentiment
 The stock has a two-star rating (out of five) at Motley Fool CAPS, with 547 members out of 573 rating the stock outperform, and 26 members rating it underperform. Among 100 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 94 give Talisman Energy a green thumbs-up, and six give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Talisman Energy is hold, with an average price target of $13.01.

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The article Talisman 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. 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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