The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Continental Resources beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly. Non-GAAP earnings per share expanded significantly. GAAP earnings per share increased.
Gross margins dropped, operating margins increased, net margins grew.
Continental Resources logged revenue of $679.3 million. The 15 analysts polled by S&P Capital IQ predicted a top line of $656.8 million on the same basis. GAAP reported sales were 33% higher than the prior-year quarter's $516.7 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 $1.04. The 23 earnings estimates compiled by S&P Capital IQ predicted $0.87 per share. Non-GAAP EPS of $1.04 for Q4 were 25% higher than the prior-year quarter's $0.83 per share. GAAP EPS were $1.19 for Q4 compared to -$0.62 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 81.1%, 120 basis points worse than the prior-year quarter. Operating margin was 43.0%, much better than the prior-year quarter. Net margin was 32.0%, much better than the prior-year quarter.
Next quarter's average estimate for revenue is $721.9 million. On the bottom line, the average EPS estimate is $1.01.
Next year's average estimate for revenue is $3.28 billion. The average EPS estimate is $4.61.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 704 members out of 737 rating the stock outperform, and 33 members rating it underperform. Among 128 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 119 give Continental Resources 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 Continental Resources is outperform, with an average price target of $97.67.
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