The 10-second takeaway
For the quarter ended Sep. 30 (Q3), EOG Resources beat expectations on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue grew slightly and GAAP earnings per share contracted significantly.
Gross margins expanded, operating margins dropped, net margins shrank.
EOG Resources logged revenue of $2.95 billion. The eight analysts polled by S&P Capital IQ wanted to see sales of $2.78 billion on the same basis. GAAP reported sales were 27% higher than the prior-year quarter's $2.32 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 $1.73. The 29 earnings estimates compiled by S&P Capital IQ forecast $1.12 per share. GAAP EPS of $1.31 for Q3 were 35% lower than the prior-year quarter's $2.01 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 85.0%, 2,590 basis points better than the prior-year quarter. Operating margin was 22.6%, 940 basis points worse than the prior-year quarter. Net margin was 12.0%, 1,130 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $2.88 billion. On the bottom line, the average EPS estimate is $1.20.
Next year's average estimate for revenue is $11.35 billion. The average EPS estimate is $4.67.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 844 members out of 876 rating the stock outperform, and 32 members rating it underperform. Among 223 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 214 give EOG Resources 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 EOG Resources is outperform, with an average price target of $129.50.
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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.