The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Concho Resources missed estimates on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue increased and GAAP earnings per share dropped significantly.
Margins dropped across the board.
Concho Resources notched revenue of $497.5 million. The 14 analysts polled by S&P Capital IQ expected to see a top line of $516.1 million on the same basis. GAAP reported sales were 9.5% higher than the prior-year quarter's $454.5 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 $0.96. The 21 earnings estimates compiled by S&P Capital IQ averaged $1.04 per share. GAAP EPS of $0.06 for Q3 were 98% lower than the prior-year quarter's $3.44 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 80.6%, 150 basis points worse than the prior-year quarter. Operating margin was 13.0%, 12,180 basis points worse than the prior-year quarter. Net margin was 1.2%, 7,720 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $552.1 million. On the bottom line, the average EPS estimate is $1.12.
Next year's average estimate for revenue is $2.00 billion. The average EPS estimate is $4.01.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 239 members out of 256 rating the stock outperform, and 17 members rating it underperform. Among 50 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 47 give Concho Resources a green thumbs-up, and three 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 $118.30.
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