The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Apache beat expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue dropped and GAAP earnings per share shrank significantly.
Margins dropped across the board.
Apache reported revenue of $4.18 billion. The 14 analysts polled by S&P Capital IQ hoped for revenue of $4.10 billion on the same basis. GAAP reported sales were 2.2% lower than the prior-year quarter's $4.27 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 $2.16. The 25 earnings estimates compiled by S&P Capital IQ averaged $2.27 per share. GAAP EPS of $0.41 for Q3 were 84% lower than the prior-year quarter's $2.51 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 78.8%, 530 basis points worse than the prior-year quarter. Operating margin was 21.8%, 2,820 basis points worse than the prior-year quarter. Net margin was 4.3%, 1,910 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $4.41 billion. On the bottom line, the average EPS estimate is $2.44.
Next year's average estimate for revenue is $16.94 billion. The average EPS estimate is $9.77.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 2,063 members out of 2,121 rating the stock outperform, and 58 members rating it underperform. Among 414 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 405 give Apache a green thumbs-up, and nine give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Apache is outperform, with an average price target of $113.52.
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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 owns shares of Apache. 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.