The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Apache beat expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue dropped and GAAP earnings per share shrank significantly.
Margins dropped across the board.
Apache reported revenue of $4.18 billion. The 14 analysts polled by S&P Capital IQ hoped for revenue of $4.10 billion on the same basis. GAAP reported sales were 2.2% lower than the prior-year quarter's $4.27 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 $2.16. The 25 earnings estimates compiled by S&P Capital IQ averaged $2.27 per share. GAAP EPS of $0.41 for Q3 were 84% lower than the prior-year quarter's $2.51 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 78.8%, 530 basis points worse than the prior-year quarter. Operating margin was 21.8%, 2,820 basis points worse than the prior-year quarter. Net margin was 4.3%, 1,910 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $4.41 billion. On the bottom line, the average EPS estimate is $2.44.
Next year's average estimate for revenue is $16.94 billion. The average EPS estimate is $9.77.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 2,063 members out of 2,121 rating the stock outperform, and 58 members rating it underperform. Among 414 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 405 give Apache a green thumbs-up, and nine 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 $113.52.
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