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Cabot Oil & Gas Beats Analyst Estimates on EPS

By Seth Jayson - Updated Apr 10, 2017 at 1:42PM

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Just the facts, Fool.

Cabot Oil & Gas (NYSE: COG) reported earnings on April 24. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), Cabot Oil & Gas met expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue increased significantly. Non-GAAP earnings per share grew significantly. GAAP earnings per share expanded significantly.

Margins expanded across the board.

Revenue details
Cabot Oil & Gas recorded revenue of $373.3 million. The 15 analysts polled by S&P Capital IQ expected to see a top line of $370.8 million on the same basis. GAAP reported sales were 37% higher than the prior-year quarter's $272.1 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 $0.26. The 22 earnings estimates compiled by S&P Capital IQ predicted $0.25 per share. Non-GAAP EPS of $0.26 for Q1 were 86% higher than the prior-year quarter's $0.14 per share. GAAP EPS of $0.20 for Q1 were 122% higher than the prior-year quarter's $0.09 per share.

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 76.9%, 240 basis points better than the prior-year quarter. Operating margin was 23.3%, 600 basis points better than the prior-year quarter. Net margin was 11.5%, 480 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $414.2 million. On the bottom line, the average EPS estimate is $0.33.

Next year's average estimate for revenue is $1.80 billion. The average EPS estimate is $1.48.

Investor sentiment

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Cabot Oil & Gas is outperform, with an average price target of $65.43.

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