The 10-second takeaway
For the quarter ended June 30 (Q2), SM Energy whiffed on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue dropped significantly and GAAP earnings per share dropped significantly.
Margins dropped across the board.
SM Energy recorded revenue of $304.4 million. The 11 analysts polled by S&P Capital IQ hoped for a top line of $373.0 million on the same basis. GAAP reported sales were 14% lower than the prior-year quarter's $354.2 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 $0.09. The earnings estimates compiled by S&P Capital IQ anticipated $0.25 per share. GAAP EPS of $0.37 for Q2 were 80% lower than the prior-year quarter's $1.86 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 64.4%, 1,570 basis points worse than the prior-year quarter. Operating margin was 10.0%, 3,730 basis points worse than the prior-year quarter. Net margin was 8.2%, 2,700 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $401.1 million. On the bottom line, the average EPS estimate is $0.33.
Next year's average estimate for revenue is $1.58 billion. The average EPS estimate is $1.56.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 292 members out of 309 rating the stock outperform, and 17 members rating it underperform. Among 61 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 57 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 $86.43.
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