Eagle Rock Energy Partners Whiffs on Revenues

Eagle Rock Energy Partners (Nasdaq: EROC  ) reported earnings on May 1. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), Eagle Rock Energy Partners whiffed on revenues and missed expectations on earnings per share.

Compared to the prior-year quarter, revenue expanded. GAAP loss per share dropped.

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

Revenue details
Eagle Rock Energy Partners chalked up revenue of $257.7 million. The four analysts polled by S&P Capital IQ wanted to see sales of $305.3 million on the same basis. GAAP reported sales were 10% higher than the prior-year quarter's $234.2 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 -$0.23. The three earnings estimates compiled by S&P Capital IQ forecast $0.05 per share. GAAP EPS were -$0.23 for Q1 versus -$0.39 per share for the prior-year quarter.

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 17.7%, much worse than the prior-year quarter. Operating margin was -6.8%, 970 basis points worse than the prior-year quarter. Net margin was -13.0%, 850 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $303.9 million. On the bottom line, the average EPS estimate is $0.04.

Next year's average estimate for revenue is $1.28 billion. The average EPS estimate is $0.17.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 535 members out of 553 rating the stock outperform, and 18 members rating it underperform. Among 162 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 157 give Eagle Rock Energy Partners a green thumbs-up, and five give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Eagle Rock Energy Partners is outperform, with an average price target of $10.30.

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