The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Approach Resources met expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue increased significantly and GAAP earnings per share shrank to a loss.
Gross margins improved, operating margins shrank, net margins dropped.
Approach Resources logged revenue of $31.1 million. The eight analysts polled by S&P Capital IQ expected a top line of $31.1 million on the same basis. GAAP reported sales were 91% higher than the prior-year quarter's $16.3 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 $0.19. The 14 earnings estimates compiled by S&P Capital IQ predicted $0.20 per share on the same basis. GAAP EPS were -$0.30 for Q4 compared to $0.01 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 83.6%, 480 basis points better than the prior-year quarter. Operating margin was -43.9%, 4,930 basis points worse than the prior-year quarter. Net margin was -29.8%, 3,140 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $32.6 million. On the bottom line, the average EPS estimate is $0.19.
Next year's average estimate for revenue is $155.9 million. The average EPS estimate is $1.00.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 140 members out of 153 rating the stock outperform, and 13 members rating it underperform. Among 43 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 39 give Approach Resources a green thumbs-up, and four give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Approach Resources is outperform, with an average price target of $35.27.
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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.