The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Apache met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly and GAAP earnings per share improved significantly.
Margins increased across the board.
Apache logged revenue of $4.30 billion. The 14 analysts polled by S&P Capital IQ predicted sales of $4.28 billion on the same basis. GAAP reported sales were 25% higher than the prior-year quarter's $3.42 billion.
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 $2.94. The 20 earnings estimates compiled by S&P Capital IQ anticipated $2.86 per share on the same basis. GAAP EPS of $2.98 for Q4 were 68% higher than the prior-year quarter's $1.77 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 82.9%, 160 basis points better than the prior-year quarter. Operating margin was 46.1%, 100 basis points better than the prior-year quarter. Net margin was 27.7%, 760 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $4.43 billion. On the bottom line, the average EPS estimate is $2.96.
Next year's average estimate for revenue is $18.71 billion. The average EPS estimate is $12.38.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 1,972 members out of 2,025 rating the stock outperform, and 53 members rating it underperform. Among 498 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 491 give Apache 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 Apache is outperform, with an average price target of $133.04.
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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.