Continental Resources
The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Continental Resources beat expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly and GAAP earnings per share dropped significantly.
Margins dropped across the board.
Revenue details
Continental Resources booked revenue of $642.0 million. The 13 analysts polled by S&P Capital IQ predicted revenue of $612.6 million on the same basis. GAAP reported sales were 49% higher than the prior-year quarter's $431.6 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS details
EPS came in at $0.87. The 18 earnings estimates compiled by S&P Capital IQ forecast $0.86 per share. GAAP EPS of $0.24 for Q3 were 90% lower than the prior-year quarter's $2.44 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
Margin details
For the quarter, gross margin was 80.6%, 40 basis points worse than the prior-year quarter. Operating margin was 16.8%, 15,210 basis points worse than the prior-year quarter. Net margin was 6.9%, 9,480 basis points worse than the prior-year quarter.
Looking ahead
Next quarter's average estimate for revenue is $671.3 million. On the bottom line, the average EPS estimate is $0.93.
Next year's average estimate for revenue is $2.42 billion. The average EPS estimate is $3.26.
Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 704 members out of 735 rating the stock outperform, and 31 members rating it underperform. Among 129 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 122 give Continental Resources a green thumbs-up, and seven 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 $88.03.
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