Crosstex Energy Increases Sales but Misses Revenue Estimate

Crosstex Energy (Nasdaq: XTEX  ) reported earnings on May 8. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), Crosstex Energy missed estimates on revenues and exceeded expectations on earnings per share.

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

Margins contracted across the board.

Revenue details
Crosstex Energy recorded revenue of $445.7 million. The seven analysts polled by S&P Capital IQ expected to see a top line of $479.5 million on the same basis. GAAP reported sales were 20% higher than the prior-year quarter's $371.7 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 -$0.15. The nine earnings estimates compiled by S&P Capital IQ averaged -$0.24 per share. Non-GAAP EPS were -$0.15 for Q1 against -$0.03 per share for the prior-year quarter. GAAP EPS were -$0.06 for Q1 versus -$0.03 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 15.1%, 430 basis points worse than the prior-year quarter. Operating margin was 3.2%, 290 basis points worse than the prior-year quarter. Net margin was -0.7%, 150 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $460.5 million. On the bottom line, the average EPS estimate is -$0.25.

Next year's average estimate for revenue is $2.10 billion. The average EPS estimate is -$0.66.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 210 members out of 258 rating the stock outperform, and 48 members rating it underperform. Among 87 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 80 give Crosstex Energy a green thumbs-up, and seven give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Crosstex Energy is outperform, with an average price target of $19.00.

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