NEW YORK (TheStreet) --Shares of Denbury Resources Inc. (DNR - Get Report) are up 1.56% to $17.31 on Tuesday after the company reported revenue for the 2014 first quarter increased 9% to $635 million from $580 million for the 2013 first quarter.
The independent oil and natural gas company said net income for the 2014 first quarter declined to $58 million, or 17 cents per diluted share from $88 million, or 23 cents per diluted share for the same period last year.
Denbury reported its adjusted net income was $89 million, or 25 cents per diluted share, compared to $123 million, or 33 cents per diluted share from the year ago quarter
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TheStreet Ratings team rates DENBURY RESOURCES INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:"We rate DENBURY RESOURCES INC (DNR) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. Among the primary strengths of the company is its expanding profit margins over time. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity." Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The gross profit margin for DENBURY RESOURCES INC is rather high; currently it is at 60.02%. Regardless of DNR's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, DNR's net profit margin of 15.10% compares favorably to the industry average.
- DENBURY RESOURCES INC's earnings per share declined by 16.7% in the most recent quarter compared to the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past year. However, we anticipate this trend reversing over the coming year. During the past fiscal year, DENBURY RESOURCES INC reported lower earnings of $1.11 versus $1.35 in the prior year. This year, the market expects an improvement in earnings ($1.12 versus $1.11).
- DNR, with its decline in revenue, slightly underperformed the industry average of 0.2%. Since the same quarter one year prior, revenues slightly dropped by 1.3%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
- DNR's debt-to-equity ratio of 0.62 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further. Despite the fact that DNR's debt-to-equity ratio is mixed in its results, the company's quick ratio of 0.52 is low and demonstrates weak liquidity.
- The change in net income from the same quarter one year ago has exceeded that of the Oil, Gas & Consumable Fuels industry average, but is less than that of the S&P 500. The net income has decreased by 21.5% when compared to the same quarter one year ago, dropping from $114.66 million to $89.99 million.
- You can view the full analysis from the report here: DNR Ratings Report