The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Cimarex Energy beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased and GAAP earnings per share contracted.
Margins dropped across the board.
Cimarex Energy reported revenue of $430.3 million. The 10 analysts polled by S&P Capital IQ expected sales of $420.9 million on the same basis. GAAP reported sales were 5.5% higher than the prior-year quarter's $408.0 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 $1.40. The 18 earnings estimates compiled by S&P Capital IQ averaged $1.30 per share on the same basis. GAAP EPS of $1.50 for Q4 were 3.8% lower than the prior-year quarter's $1.56 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 79.9%, 180 basis points worse than the prior-year quarter. Operating margin was 43.1%, 560 basis points worse than the prior-year quarter. Net margin was 27.2%, 160 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $415.3 million. On the bottom line, the average EPS estimate is $1.25.
Next year's average estimate for revenue is $1.77 billion. The average EPS estimate is $5.49.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 512 members out of 532 rating the stock outperform, and 20 members rating it underperform. Among 138 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 135 give Cimarex Energy a green thumbs-up, and three give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Cimarex Energy is outperform, with an average price target of $85.36.
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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.