Venoco Beats Expectations but Takes a Step Back Anyway

Venoco (NYSE: VQ  ) filed its 10-K on Feb. 16. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Venoco missed slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share increased significantly.
Margins grew across the board.
Revenue details
Venoco recorded revenue of $83.4 million. The seven analysts polled by S&P Capital IQ foresaw a top line of $84.7 million on the same basis. GAAP reported sales were 16% higher than the prior-year quarter's $72.1 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 $0.35. The 10 earnings estimates compiled by S&P Capital IQ averaged $0.11 per share on the same basis. GAAP EPS of $0.50 for Q4 were much higher than the prior-year quarter's $0.07 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 68.0%, 140 basis points better than the prior-year quarter. Operating margin was 46.9%, 6,080 basis points better than the prior-year quarter. Net margin was 36.5%, 3,030 basis points better than the prior-year quarter.
Looking ahead
Next quarter's average estimate for revenue is $99.4 million. On the bottom line, the average EPS estimate is $0.10.
Next year's average es! timate f or revenue is $432.8 million. The average EPS estimate is $1.08.
Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 133 members out of 152 rating the stock outperform, and 19 members rating it underperform. Among 51 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 47 give Venoco 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 Venoco is hold, with an average price target of $12.93.
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