Approach Resources (Nasdaq: AREX) reported earnings on March 8. Here are the numbers you need to know.

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.

Revenue details
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.

EPS details
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.

Margin details
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.

Looking ahead
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.

Investor sentiment
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.

Over the decades, small-cap stocks, like Approach Resources have provided market-beating returns, provided they're value priced and have solid businesses. Read about a pair of companies with a lock on their markets in "Too Small to Fail: Two Small Caps the Government Won't Let Go Broke." Click here for instant access to this free report.