Please ensure Javascript is enabled for purposes of website accessibility

Newfield Exploration Beats Expectations But Takes A Step Back Anyway

By Seth Jayson - Updated Apr 10, 2017 at 1:43PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Just the facts, Fool.

Newfield Exploration (NYSE: NFX) reported earnings on April 23. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), Newfield Exploration missed slightly on revenues and beat slightly on earnings per share.

Compared to the prior-year quarter, revenue dropped. Non-GAAP earnings per share contracted significantly. GAAP earnings per share shrank to a loss.

Margins dropped across the board.

Revenue details
Newfield Exploration reported revenue of $651.0 million. The five analysts polled by S&P Capital IQ expected a top line of $663.9 million on the same basis. GAAP reported sales were the same as the prior-year quarter's.

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 $0.45. The 20 earnings estimates compiled by S&P Capital IQ predicted $0.44 per share. Non-GAAP EPS of $0.45 for Q1 were 51% lower than the prior-year quarter's $0.91 per share. GAAP EPS were -$0.06 for Q1 versus $0.86 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 63.4%, 560 basis points worse than the prior-year quarter. Operating margin was 22.3%, much worse than the prior-year quarter. Net margin was -1.2%, much worse than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $627.3 million. On the bottom line, the average EPS estimate is $0.41.

Next year's average estimate for revenue is $2.52 billion. The average EPS estimate is $1.73.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 320 members out of 343 rating the stock outperform, and 23 members rating it underperform. Among 84 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 81 give Newfield Exploration a green thumbs-up, and three give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Newfield Exploration is outperform, with an average price target of $34.47.

Is Newfield Exploration 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.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Newfield Exploration Company Stock Quote
Newfield Exploration Company
NFX

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
338%
 
S&P 500 Returns
119%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/18/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.