W&T Offshore Beats on Both Top and Bottom Lines

W&T Offshore (NYSE: WTI  ) reported earnings on Feb. 26. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), W&T Offshore beat expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue dropped. Non-GAAP earnings per share dropped significantly. GAAP earnings per share contracted significantly.

Margins shrank across the board.

Revenue details
W&T Offshore reported revenue of $237.1 million. The seven analysts polled by S&P Capital IQ anticipated a top line of $227.2 million on the same basis. GAAP reported sales were 9.5% lower than the prior-year quarter's $261.9 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 $0.26. The 11 earnings estimates compiled by S&P Capital IQ predicted $0.23 per share. Non-GAAP EPS of $0.26 for Q4 were 62% lower than the prior-year quarter's $0.69 per share. GAAP EPS of $0.21 for Q4 were 66% lower than the prior-year quarter's $0.61 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 71.6%, 350 basis points worse than the prior-year quarter. Operating margin was 19.7%, much worse than the prior-year quarter. Net margin was 7.0%, much worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $234.4 million. On the bottom line, the average EPS estimate is $0.26.

Next year's average estimate for revenue is $910.0 million. The average EPS estimate is $1.16.

Investor sentiment

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on W&T Offshore is outperform, with an average price target of $22.38.

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