The 10-second takeaway
For the quarter ended June 30 (Q2), Apache beat expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded. Non-GAAP earnings per share dropped slightly. GAAP earnings per share expanded significantly.
Gross margins contracted, operating margins shrank, net margins grew.
Apache recorded revenue of $4.38 billion. The 16 analysts polled by S&P Capital IQ wanted to see sales of $4.29 billion on the same basis. GAAP reported sales were 12% higher than the prior-year quarter's $3.92 billion.
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 $2.01. The 26 earnings estimates compiled by S&P Capital IQ averaged $2.01 per share. Non-GAAP EPS of $2.01 for Q2 were 2.9% lower than the prior-year quarter's $2.07 per share. GAAP EPS of $2.54 for Q2 were 195% higher than the prior-year quarter's $0.86 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 79.3%, 220 basis points worse than the prior-year quarter. Operating margin was 38.5%, 30 basis points worse than the prior-year quarter. Net margin was 23.6%, much better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $4.34 billion. On the bottom line, the average EPS estimate is $2.13.
Next year's average estimate for revenue is $17.14 billion. The average EPS estimate is $8.27.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 2,121 members out of 2,180 rating the stock outperform, and 59 members rating it underperform. Among 390 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 380 give Apache a green thumbs-up, and 10 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 $99.23.
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