The 10-second takeaway
For the quarter ended June 30 (Q2), Range Resources crushed expectations on revenue and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly and GAAP earnings per share improved.
Margins dropped across the board.
Range Resources booked revenue of $442.4 million. The 21 analysts polled by S&P Capital IQ expected to see revenue of $315.7 million on the same basis. GAAP reported sales were 73% higher than the prior-year quarter's $257.0 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 $0.11. The 32 earnings estimates compiled by S&P Capital IQ averaged $0.08 per share. GAAP EPS of $0.34 for Q2 were 6.3% higher than the prior-year quarter's $0.32 per share. (The prior-year quarter included $0.03 per share in earnings from discontinued operations.)
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 81.4%, 460 basis points worse than the prior-year quarter. Operating margin was 31.9%, 1,940 basis points worse than the prior-year quarter. Net margin was 12.5%, 750 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $358.9 million. On the bottom line, the average EPS estimate is $0.19.
Next year's average estimate for revenue is $1.36 billion. The average EPS estimate is $0.70.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 561 members out of 609 rating the stock outperform, and 48 members rating it underperform. Among 154 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 135 give Range Resources a green thumbs-up, and 19 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Range Resources is outperform, with an average price target of $73.10.
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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. Motley Fool newsletter services have recommended buying shares of Range Resources. 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.