Apache Misses Where it Counts

Apache (NYSE: APA  ) reported earnings on Feb. 14. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Apache beat slightly on revenues and missed estimates on earnings per share.

Compared to the prior-year quarter, revenue increased slightly and GAAP earnings per share dropped significantly.

Margins dropped across the board.

Revenue details
Apache logged revenue of $4.39 billion. The 13 analysts polled by S&P Capital IQ predicted sales of $4.34 billion on the same basis. GAAP reported sales were the same as the prior-year quarter's.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $2.27. The 23 earnings estimates compiled by S&P Capital IQ anticipated $2.31 per share. GAAP EPS of $1.64 for Q4 were 45% lower than the prior-year quarter's $2.97 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 80.5%, 340 basis points worse than the prior-year quarter. Operating margin was 38.3%, 1,090 basis points worse than the prior-year quarter. Net margin was 15.2%, 1,280 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $4.34 billion. On the bottom line, the average EPS estimate is $2.29.

Next year's average estimate for revenue is $17.90 billion. The average EPS estimate is $9.61.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 2,107 members out of 2,162 rating the stock outperform, and 55 members rating it underperform. Among 453 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 444 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 $108.09.

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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. TMFDisclosureHere


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