Comstock Resources Beats Up on Analysts Yet Again

Comstock Resources (NYSE: CRK  ) reported earnings  Feb. 6. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Comstock Resources beat expectations on revenues and exceeded expectations on earnings per share.

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

Gross margins expanded, operating margins dropped, net margins contracted.

Revenue details
Comstock Resources reported revenue of $119.4 million. The seven analysts polled by S&P Capital IQ hoped for sales of $116.8 million. Sales were 58% higher than the prior-year quarter's $79.7 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.

EPS details
Non-GAAP EPS came in at -$0.01. The 12 earnings estimates compiled by S&P Capital IQ predicted -$0.08 per share on the same basis. GAAP EPS were -$0.89 for Q3 against -$0.45 per share for the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 82.8%, 710 basis points better than the prior-year quarter. Operating margin was -46.8%, 4,190 basis points worse than the prior-year quarter. Net margin was -35.9%, 750 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $112.3 million. On the bottom line, the average EPS estimate is -$0.11.

Next year's average estimate for revenue is $429.4 million. The average EPS estimate is -$0.27.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 279 members rating the stock outperform and 25 members rating it underperform. Among 77 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 72 give Comstock Resources a green thumbs-up, and five give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Comstock Resources is outperform, with an average price target of $26.00.

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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


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