The 10-second takeaway
For the quarter ended March 31 (Q1), Comstock Resources missed estimates on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly and GAAP earnings per share expanded significantly.
Gross margins dropped, operating margins grew, and net margins improved.
Comstock Resources logged revenue of $117.1 million. The six analysts polled by S&P Capital IQ wanted to see sales of $122.1 million on the same basis. GAAP reported sales were 33% higher than the prior-year quarter's $88.0 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at -$0.30. The 16 earnings estimates compiled by S&P Capital IQ averaged -$0.16 per share. GAAP EPS of $0.14 for Q1 were 180% higher than the prior-year quarter's $0.05 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 77.6%, 210 basis points worse than the prior-year quarter. Operating margin was 1.3%, 1,060 basis points better than the prior-year quarter. Net margin was 5.9%, 320 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $128.1 million. On the bottom line, the average EPS estimate is -$0.13.
Next year's average estimate for revenue is $538.1 million. The average EPS estimate is -$0.01.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 282 members out of 304 rating the stock outperform, and 22 members rating it underperform. Among 69 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 63 give Comstock Resources a green thumbs-up, and six give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Comstock Resources is outperform, with an average price target of $22.07.
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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.