The 10-second takeaway
For the quarter ended June 30 (Q2), EOG Resources beat expectations on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share increased significantly.
Gross margins dropped, operating margins grew, and net margins increased.
EOG Resources chalked up revenue of $2.91 billion. The seven analysts polled by S&P Capital IQ expected revenue of $2.65 billion on the same basis. GAAP reported sales were 18% higher than the prior-year quarter's $2.22 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 $1.16. The 27 earnings estimates compiled by S&P Capital IQ predicted $0.93 per share. GAAP EPS of $1.47 for Q2 were 34% higher than the prior-year quarter's $1.10 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 57.8%, 590 basis points worse than the prior-year quarter. Operating margin was 22.2%, 310 basis points better than the prior-year quarter. Net margin was 15.2%, 190 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $2.59 billion. On the bottom line, the average EPS estimate is $0.99.
Next year's average estimate for revenue is $10.88 billion. The average EPS estimate is $4.45.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 847 members rating the stock outperform and 35 members rating it underperform. Among 216 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 206 give EOG Resources a green thumbs-up, and 10 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on EOG Resources is outperform, with an average price target of $128.59.
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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.