The 10-second takeaway
For the quarter ended March 31 (Q1), SM Energy missed estimates on revenues and missed estimates on earnings per share.
Compared with the prior-year quarter, revenue grew significantly and GAAP earnings per share increased.
Margins expanded across the board.
SM Energy recorded revenue of $377.4 million. The 11 analysts polled by S&P Capital IQ predicted revenue of $395.6 million on the same basis. GAAP reported sales were 29% higher than the prior-year quarter's $291.8 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 $0.48. The 18 earnings estimates compiled by S&P Capital IQ anticipated $0.53 per share. GAAP EPS were $0.39 for Q1 against -$0.29 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 73.9%, 330 basis points better than the prior-year quarter. Operating margin was 15.9%, 2,640 basis points better than the prior-year quarter. Net margin was 7.0%, 1,330 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $414.0 million. On the bottom line, the average EPS estimate is $0.58.
Next year's average estimate for revenue is $1.76 billion. The average EPS estimate is $2.64.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 291 members out of 310 rating the stock outperform, and 19 members rating it underperform. Among 64 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 60 give SM Energy 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 SM Energy is outperform, with an average price target of $96.92.
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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. He is the 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 don't 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.