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McMoRan Exploration Goes Negative

Sunday - 1/20/2013, 11:27am  ET

McMoRan Exploration reported earnings on Jan. 18. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), McMoRan Exploration missed estimates on revenues and exceeded expectations on earnings per share.

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

Margins shrank across the board.

Revenue details
McMoRan Exploration logged revenue of $84.2 million. The four analysts polled by S&P Capital IQ predicted sales of $89.0 million on the same basis. GAAP reported sales were 31% lower than the prior-year quarter's $121.9 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 -$0.03. The eight earnings estimates compiled by S&P Capital IQ predicted -$0.12 per share. GAAP EPS were -$0.01 for Q4 compared to $0.16 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 56.7%, 620 basis points worse than the prior-year quarter. Operating margin was -34.4%, 3,780 basis points worse than the prior-year quarter. Net margin was 10.8%, 2,100 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $93.5 million. On the bottom line, the average EPS estimate is -$0.11.

Next year's average estimate for revenue is $390.0 million. The average EPS estimate is -$0.58.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 502 members out of 524 rating the stock outperform, and 22 members rating it underperform. Among 131 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 125 give McMoRan Exploration 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 McMoRan Exploration is outperform, with an average price target of $16.07.

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This article was originally published as McMoRan Exploration Goes Negativeon Fool.com

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