Whiting Petroleum Increases Sales but Misses Revenue Estimate

Whiting Petroleum (NYS: WLL) reported earnings on July 25. Here are the numbers you need to know.

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

Compared to the prior-year quarter, revenue expanded and GAAP earnings per share contracted significantly.


Margins dropped across the board.

Revenue details
Whiting Petroleum reported revenue of $502.2 million. The 16 analysts polled by S&P Capital IQ predicted sales of $527.6 million on the same basis. GAAP reported sales were 6.0% higher than the prior-year quarter's $473.9 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 $0.73. The 27 earnings estimates compiled by S&P Capital IQ averaged $0.88 per share. GAAP EPS of $1.27 for Q2 were 26% lower than the prior-year quarter's $1.71 per share.

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 74.1%, 310 basis points worse than the prior-year quarter. Operating margin was 51.4%, 1,830 basis points worse than the prior-year quarter. Net margin was 30.0%, 1,290 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $539.2 million. On the bottom line, the average EPS estimate is $0.88.

Next year's average estimate for revenue is $2.20 billion. The average EPS estimate is $3.73.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 679 members out of 701 rating the stock outperform, and 22 members rating it underperform. Among 105 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 101 give Whiting Petroleum 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 Whiting Petroleum is outperform, with an average price target of $66.84.

The article Whiting Petroleum Increases Sales but Misses Revenue Estimate 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 of Motley 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.

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