The 10-second takeaway
For the quarter ended Dec. 31 (Q4), SM Energy beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly. Non-GAAP earnings per share dropped significantly. GAAP loss per share contracted.
Gross margins shrank, operating margins increased, net margins grew.
SM Energy logged revenue of $444.3 million. The 14 analysts polled by S&P Capital IQ predicted net sales of $416.3 million on the same basis. GAAP reported sales were 8.2% higher than the prior-year quarter's $410.7 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 $0.45. The 24 earnings estimates compiled by S&P Capital IQ predicted $0.24 per share. Non-GAAP EPS of $0.45 for Q4 were 25% lower than the prior-year quarter's $0.60 per share. GAAP EPS were -$1.02 for Q4 versus -$1.89 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 73.1%, 260 basis points worse than the prior-year quarter. Operating margin was -21.9%, 1,610 basis points better than the prior-year quarter. Net margin was -15.1%, 1,430 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $431.8 million. On the bottom line, the average EPS estimate is $0.28.
Next year's average estimate for revenue is $1.89 billion. The average EPS estimate is $1.76.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 280 members out of 297 rating the stock outperform, and 17 members rating it underperform. Among 64 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 59 give SM Energy a green thumbs-up, and five give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on SM Energy is outperform, with an average price target of $69.60.
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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. TMFDisclosureHere