The 10-second takeaway
For the quarter ended June 30 (Q2), Continental Resources missed estimates on revenues and earnings per share.
Compared to the prior-year quarter, revenue shrank and GAAP earnings per share grew significantly.
Gross margins increased, operating margins contracted, and net margins shrank.
Continental Resources booked revenue of $533.0 million. The 11 analysts polled by S&P Capital IQ foresaw a top line of $554.2 million on the same basis. GAAP reported sales were much higher than the prior-year quarter's $398.4 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 $0.68. The 17 earnings estimates compiled by S&P Capital IQ predicted $0.75 per share. GAAP EPS of $2.25 for Q2 were 69% higher than the prior-year quarter's $1.33 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 90.0%, 860 basis points better than the prior-year quarter. Operating margin was 66.6%, 3,480 basis points worse than the prior-year quarter. Net margin was 40.4%, 1,960 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $593.4 million. On the bottom line, the average EPS estimate is $0.80.
Next year's average estimate for revenue is $2.29 billion. The average EPS estimate is $3.23.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 701 members out of 731 rating the stock outperform, and 30 members rating it underperform. Among 116 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 110 give Continental Resources a green thumbs-up, and six give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Continental Resources is outperform, with an average price target of $93.03.
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