Bes Stocks To Buy 2014, Best Stocks For 2014: Denbury Resources Crushes Earnings Estimates

Tuesday, April 3, 2012

Denbury Resources Crushes Earnings Estimates

Denbury Resources (NYSE: DNR ) reported earnings on Feb. 23. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Denbury Resources beat expectations on revenues and crushed expectations on earnings per share.

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

Margins increased across the board.

Revenue details
Denbury Resources tallied revenue of $617.3 million. The six analysts polled by S&P Capital IQ expected to see a top line of $572.2 million on the same basis. GAAP reported sales were 19% higher than the prior-year quarter's $519.0 million.

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

EPS details
Non-GAAP EPS came in at $0.45. The 17 earnings estimates compiled by S&P Capital IQ forecast $0.32 per share on the same basis. GAAP EPS of $0.13 for Q4 were much higher than the prior-year quarter's $0.02 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 78.4%, 1,110 basis points better than the prior-year quarter. Operating margin was 22.4%, 600 basis points better than the prior-year quarter. Net margin was 8.5%, 650 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $549.3 million. On the bottom line, the aver! age EPS estimate is $0.31.

Next year's average estimate for revenue is $2.36 billion. The average EPS estimate is $1.39.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 1,024 members rating the stock outperform and 22 members rating it underperform. Among 320 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 317 give Denbury Resources a green thumbs-up, and three give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Denbury Resources is outperform, with an average price target of $24.22.

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