The 10-second takeaway
For the quarter ended June 30 (Q2), Concho Resources missed estimates on revenues and whiffed on earnings per share.
Compared to the prior-year quarter, revenue contracted and GAAP earnings per share increased significantly.
Gross margins dropped, operating margins expanded, net margins increased.
Concho Resources booked revenue of $432.8 million. The 10 analysts polled by S&P Capital IQ foresaw a top line of $466.3 million on the same basis. GAAP reported sales were 3.0% lower than the prior-year quarter's $446.2 million.
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 $0.78. The 19 earnings estimates compiled by S&P Capital IQ predicted $1.00 per share. GAAP EPS of $3.07 for Q2 were 37% higher than the prior-year quarter's $2.24 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 79.7%, 530 basis points worse than the prior-year quarter. Operating margin was 129.2%, 3,980 basis points better than the prior-year quarter. Net margin was 73.8%, 2,180 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $524.3 million. On the bottom line, the average EPS estimate is $1.12.
Next year's average estimate for revenue is $2.04 billion. The average EPS estimate is $4.43.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 241 members out of 258 rating the stock outperform, and 17 members rating it underperform. Among 50 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 46 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 $124.56.
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