The 10-second takeaway
For the quarter ended Sep. 30 (Q3), QEP Resources 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 to a loss.
Gross margins increased, operating margins shrank, net margins shrank.
QEP Resources notched revenue of $542.4 million. The seven analysts polled by S&P Capital IQ foresaw a top line of $618.6 million on the same basis. GAAP reported sales were 36% lower than the prior-year quarter's $852.4 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 $0.19. The 15 earnings estimates compiled by S&P Capital IQ predicted $0.34 per share. GAAP EPS were -$0.02 for Q3 compared to $0.57 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 57.4%, 950 basis points better than the prior-year quarter. Operating margin was 4.3%, 1,710 basis points worse than the prior-year quarter. Net margin was -0.6%, 1,250 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $679.2 million. On the bottom line, the average EPS estimate is $0.44.
Next year's average estimate for revenue is $2.39 billion. The average EPS estimate is $1.48.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 57 members out of 60 rating the stock outperform, and three members rating it underperform. Among 15 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 13 give QEP Resources a green thumbs-up, and two give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on QEP Resources is outperform, with an average price target of $38.07.
Is QEP Resources the right energy stock for you? Read about a handful of timely, profit-producing plays on expensive crude in "3 Stocks for $100 Oil." Click here for instant access to this free report.
- Add QEP Resources to My Watchlist.
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.