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Concho Resources' Earnings Beat Last Year's by 53%

Concho Resources (NYSE: CXO  ) reported earnings on Feb. 22. Here are the numbers you need to know.

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

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

Margins dropped across the board.

Revenue details
Concho Resources logged revenue of $478.4 million. The 15 analysts polled by S&P Capital IQ expected a top line of $457.2 million on the same basis. GAAP reported sales were 48% higher than the prior-year quarter's $323.2 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 $1.15. The 23 earnings estimates compiled by S&P Capital IQ predicted $1.17 per share on the same basis. GAAP EPS were -$0.81 for Q4 versus -$0.08 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 81.0%, 160 basis points worse than the prior-year quarter. Operating margin was -19.5%, 2,160 basis points worse than the prior-year quarter. Net margin was -17.3%, 1,480 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $479.1 million. On the bottom line, the average EPS estimate is $1.20.

Next year's average estimate for revenue is $2.10 billion. The average EPS estimate is $5.43.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 238 members out of 255 rating the stock outperform, and 17 members rating it underperform. Among 61 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 57 give Concho Resources 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 Concho Resources is outperform, with an average price target of $115.05.

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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. He is the 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 don't 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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10/26/2016 3:46 PM
CXO $133.72 Up +0.65 +0.49%
Concho Resources CAPS Rating: **