The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Range Resources 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 expanded significantly. GAAP earnings per share expanded.
Margins increased across the board.
Range Resources booked revenue of $458.0 million. The 21 analysts polled by S&P Capital IQ foresaw sales of $402.5 million on the same basis. GAAP reported sales were 9.0% higher than the prior-year quarter's $420.2 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 $0.46. The 36 earnings estimates compiled by S&P Capital IQ predicted $0.28 per share. Non-GAAP EPS of $0.46 for Q4 were 39% higher than the prior-year quarter's $0.33 per share. GAAP EPS were $0.32 for Q4 versus -$0.02 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 78.5%, much better than the prior-year quarter. Operating margin was 30.5%, much better than the prior-year quarter. Net margin was 11.6%, much better than the prior-year quarter.
Next quarter's average estimate for revenue is $399.7 million. On the bottom line, the average EPS estimate is $0.24.
Next year's average estimate for revenue is $1.76 billion. The average EPS estimate is $1.18.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 543 members out of 594 rating the stock outperform, and 51 members rating it underperform. Among 169 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 146 give Range Resources a green thumbs-up, and 23 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Range Resources is outperform, with an average price target of $77.06.
Is Range Resources the right energy stock for you? Read about a handful of timely, profit-producing plays on expensive crude in "3 Stocks for $100 Oil." Click here for instant access to this free report.
- Add Range Resources to My Watchlist.
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 recommends Range Resources. 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.