The 10-second takeaway
For the quarter ended Dec. 31 (Q4), QEP Resources beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped significantly. Non-GAAP earnings per share dropped significantly. GAAP earnings per share.
Gross margins increased, operating margins contracted, net margins contracted.
QEP Resources logged revenue of $704.9 million. The nine analysts polled by S&P Capital IQ predicted a top line of $693.4 million on the same basis. GAAP reported sales were 24% lower than the prior-year quarter's $926.5 million.
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 $0.33. The 16 earnings estimates compiled by S&P Capital IQ predicted $0.31 per share. Non-GAAP EPS of $0.33 for Q4 were 43% lower than the prior-year quarter's $0.58 per share. GAAP EPS were -$0.13 for Q4 compared to $0.00 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 51.3%, 220 basis points better than the prior-year quarter. Operating margin was -1.0%, 100 basis points worse than the prior-year quarter. Net margin was -3.3%, 330 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $690.1 million. On the bottom line, the average EPS estimate is $0.32.
Next year's average estimate for revenue is $2.85 billion. The average EPS estimate is $1.43.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 58 members out of 61 rating the stock outperform, and three members rating it underperform. Among 17 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 15 give QEP Resources a green thumbs-up, and two give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on QEP Resources is outperform, with an average price target of $38.63.
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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 position in any of the stocks mentioned. 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.