Comstock Resources Misses on the Top and Bottom Lines

Just the facts, Fool.

Seth Jayson
Seth Jayson
Feb 12, 2013 at 12:00AM
Other

Comstock Resources (NYSE: CRK) reported earnings on Feb. 11. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Comstock Resources missed estimates on revenues and missed expectations on earnings per share.

Compared to the prior-year quarter, revenue contracted and GAAP loss per share expanded.

Margins shrank across the board.

Revenue details
Comstock Resources reported revenue of $106.6 million. The 10 analysts polled by S&P Capital IQ hoped for revenue of $114.8 million on the same basis. GAAP reported sales were 6.9% lower than the prior-year quarter's $114.5 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 -$0.55. The 18 earnings estimates compiled by S&P Capital IQ forecast -$0.35 per share. GAAP EPS were -$1.68 for Q4 versus -$0.89 per share for the prior-year quarter.

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 76.3%, 650 basis points worse than the prior-year quarter. Operating margin was -95.7%, 4,890 basis points worse than the prior-year quarter. Net margin was -73.3%, 3,740 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $128.3 million. On the bottom line, the average EPS estimate is -$0.40.

Next year's average estimate for revenue is $555.8 million. The average EPS estimate is -$0.91.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 280 members out of 302 rating the stock outperform, and 22 members rating it underperform. Among 62 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 56 give Comstock Resources a green thumbs-up, and six give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Comstock Resources is outperform, with an average price target of $22.94.

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