Cabot Oil & Gas
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.
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 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.
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.)
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.
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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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.