Cabot Oil & Gas
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Cabot Oil & Gas beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly and GAAP earnings per share contracted significantly.
Gross margins contracted, operating margins increased, net margins dropped.
Cabot Oil & Gas recorded revenue of $268.0 million. The six analysts polled by S&P Capital IQ anticipated sales of $258.5 million on the same basis. GAAP reported sales were 24% higher than the prior-year quarter's $216.9 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.20. The 19 earnings estimates compiled by S&P Capital IQ anticipated $0.16 per share on the same basis. GAAP EPS of $0.13 for Q4 were 43% lower than the prior-year quarter's $0.23 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 75.5%, 650 basis points worse than the prior-year quarter. Operating margin was 26.7%, 1,260 basis points better than the prior-year quarter. Net margin was 9.8%, 1,280 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $284.1 million. On the bottom line, the average EPS estimate is $0.15.
Next year's average estimate for revenue is $1.33 billion. The average EPS estimate is $0.78.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 484 members out of 532 rating the stock outperform, and 48 members rating it underperform. Among 121 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 114 give Cabot Oil & Gas a green thumbs-up, and seven give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Cabot Oil & Gas is outperform, with an average price target of $47.69.
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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. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.