The 10-second takeaway
For the quarter ended June 30 (Q2), Hess beat expectations on revenue and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank and GAAP earnings per share contracted.
Gross margins improved, operating margins grew, and net margins contracted.
Hess reported revenue of $9.31 billion. The one analyst polled by S&P Capital IQ hoped for a top line of $8.82 billion on the same basis. GAAP reported sales were 5.6% lower than the prior-year quarter's $9.85 billion.
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 $1.72. The 17 earnings estimates compiled by S&P Capital IQ predicted $1.41 per share. GAAP EPS of $1.61 for Q2 were 9.6% lower than the prior-year quarter's $1.78 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 25.7%, 370 basis points better than the prior-year quarter. Operating margin was 13.1%, 190 basis points better than the prior-year quarter. Net margin was 5.9%, 30 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $8.80 billion. On the bottom line, the average EPS estimate is $1.21.
Next year's average estimate for revenue is $38.54 billion. The average EPS estimate is $5.72.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 936 members out of 970 rating the stock outperform, and 34 members rating it underperform. Among 195 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 187 give Hess a green thumbs-up, and eight give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Hess is outperform, with an average price target of $70.56.
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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. The Motley Fool has no positions in the stocks mentioned above. 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