SM Energy (NYSE: SM ) reported earnings on July 30. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended June 30 (Q2), SM Energy beat expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly. Non-GAAP earnings per share grew significantly. GAAP earnings per share increased significantly.
Margins increased across the board.
SM Energy chalked up revenue of $559.4 million. The 18 analysts polled by S&P Capital IQ wanted to see revenue of $509.9 million on the same basis. GAAP reported sales were 70% higher than the prior-year quarter's $328.4 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
EPS came in at $0.76. The 24 earnings estimates compiled by S&P Capital IQ predicted $0.77 per share. Non-GAAP EPS of $0.76 for Q2 were much higher than the prior-year quarter's $0.09 per share. GAAP EPS of $1.13 for Q2 were 205% higher than the prior-year quarter's $0.37 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
For the quarter, gross margin was 73.2%, 620 basis points better than the prior-year quarter. Operating margin was 24.8%, 820 basis points better than the prior-year quarter. Net margin was 13.7%, 610 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $539.7 million. On the bottom line, the average EPS estimate is $0.80.
Next year's average estimate for revenue is $2.12 billion. The average EPS estimate is $3.27.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 279 members out of 295 rating the stock outperform, and 16 members rating it underperform. Among 55 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 50 give SM Energy a green thumbs-up, and five give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on SM Energy is outperform, with an average price target of $75.63.
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