The 10-second takeaway
For the quarter ended March 31 (Q1), Newfield Exploration met expectations on revenue and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly and GAAP earnings per share expanded.
Gross margin shrank, operating margin grew, and net margin improved.
Newfield Exploration tallied revenue of $678.0 million. The nine analysts polled by S&P Capital IQ expected to see a top line of $674.6 million on the same basis. GAAP reported sales were 24% higher than the prior-year quarter's $545.0 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 $0.91. The 20 earnings estimates compiled by S&P Capital IQ forecast $0.78 per share on the same basis. GAAP EPS were $0.86 for Q1 versus -$0.13 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 69.0%, 90 basis points worse than the prior-year quarter. Operating margin was 29.1%, 2,980 basis points better than the prior-year quarter. Net margin was 17.1%, 2,020 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $663.5 million. On the bottom line, the average EPS estimate is $0.74.
Next year's average estimate for revenue is $2.74 billion. The average EPS estimate is $3.16.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 306 members out of 325 rating the stock outperform, and 19 members rating it underperform. Among 90 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 87 give Newfield Exploration 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 Newfield Exploration is outperform, with an average price target of $47.09.
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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.