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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