FX Energy Beats Expectations but Takes a Step Back Anyway
FX Energy (NAS: FXEN) reported earnings on May 10. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended March 31 (Q1), FX Energy missed estimates on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly and GAAP earnings per share increased significantly.
Gross margins contracted, operating margins grew, and net margins expanded.
FX Energy booked revenue of $8.6 million. The five analysts polled by S&P Capital IQ predicted revenue of $9.2 million on the same basis. GAAP reported sales were 20% higher than the prior-year quarter's $7.1 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 $0.00. The six earnings estimates compiled by S&P Capital IQ averaged -$0.01 per share. GAAP EPS of $0.28 for Q1 were 100% higher than the prior-year quarter's $0.14 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 82.4%, 490 basis points worse than the prior-year quarter. Operating margin was 8.4%, 440 basis points better than the prior-year quarter. Net margin was 171.1%, 7,970 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $11.1 million. On the bottom line, the average EPS estimate is -$0.01.
Next year's average estimate for revenue is $45.8 million. The average EPS estimate is -$0.01.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 127 members out of 144 rating the stock outperform, and 17 members rating it underperform. Among 21 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 19 give FX Energy a green thumbs-up, and two give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on FX Energy is buy, with an average price target of $9.71.
Over the decades, small-cap stocks like FX Energy have produced market-beating returns, provided they're value-priced and have solid businesses. Read about a pair of companies with a lock on their markets in "Too Small to Fail: 2 Small Caps the Government Won't Let Go Broke." Click here for instant access to this free report.
- Add FX Energy to My Watchlist.
At the time this article was published 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. 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.
Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.