The 10-second takeaway
For the quarter ended June 30 (Q2), Apache missed estimates on revenues and whiffed on earnings per share.
Compared to the prior-year quarter, revenue dropped and GAAP earnings per share dropped significantly.
Margins shrank across the board.
Apache logged revenue of $3.97 billion. The 11 analysts polled by S&P Capital IQ looked for revenue of $4.24 billion on the same basis. GAAP reported sales were 7.2% lower than the prior-year quarter's $4.28 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $2.07. The 25 earnings estimates compiled by S&P Capital IQ anticipated $2.57 per share. GAAP EPS of $0.86 for Q2 were 73% lower than the prior-year quarter's $3.17 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 80.5%, 370 basis points worse than the prior-year quarter. Operating margin was 22.0%, 2,890 basis points worse than the prior-year quarter. Net margin was 9.0%, 2,040 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $4.26 billion. On the bottom line, the average EPS estimate is $2.42.
Next year's average estimate for revenue is $17.37 billion. The average EPS estimate is $10.47.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 2,054 members out of 2,110 rating the stock outperform, and 56 members rating it underperform. Among 389 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 378 give Apache a green thumbs-up, and 11 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Apache is outperform, with an average price target of $122.79.
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