The 10-second takeaway
For the quarter ended Sep. 30 (Q3), QEP Resources whiffed on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue dropped significantly and GAAP earnings per share dropped to a loss.
Gross margins increased, operating margins shrank, net margins shrank.
QEP Resources notched revenue of $542.4 million. The seven analysts polled by S&P Capital IQ foresaw a top line of $618.6 million on the same basis. GAAP reported sales were 36% lower than the prior-year quarter's $852.4 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 $0.19. The 15 earnings estimates compiled by S&P Capital IQ predicted $0.34 per share. GAAP EPS were -$0.02 for Q3 compared to $0.57 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 57.4%, 950 basis points better than the prior-year quarter. Operating margin was 4.3%, 1,710 basis points worse than the prior-year quarter. Net margin was -0.6%, 1,250 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $679.2 million. On the bottom line, the average EPS estimate is $0.44.
Next year's average estimate for revenue is $2.39 billion. The average EPS estimate is $1.48.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 57 members out of 60 rating the stock outperform, and three members rating it underperform. Among 15 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 13 give QEP Resources a green thumbs-up, and two give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on QEP Resources is outperform, with an average price target of $38.07.
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