The 10-second takeaway
For the quarter ended March 31 (Q1), QEP Resources whiffed on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue grew significantly. Non-GAAP earnings per share shrank significantly. GAAP earnings per share contracted to a loss.
Gross margins grew, operating margins contracted, net margins contracted.
QEP Resources reported revenue of $696.5 million. The four analysts polled by S&P Capital IQ looked for a top line of $795.3 million on the same basis. GAAP reported sales were 15% higher than the prior-year quarter's $603.2 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 $0.28. The 17 earnings estimates compiled by S&P Capital IQ predicted $0.30 per share. Non-GAAP EPS of $0.28 for Q1 were 32% lower than the prior-year quarter's $0.41 per share. GAAP EPS were -$0.02 for Q1 versus $0.87 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 58.0%, 960 basis points better than the prior-year quarter. Operating margin was 4.4%, much worse than the prior-year quarter. Net margin was -0.6%, much worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $832.4 million. On the bottom line, the average EPS estimate is $0.37.
Next year's average estimate for revenue is $3.29 billion. The average EPS estimate is $1.58.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 57 members out of 60 rating the stock outperform, and three members rating it underperform. Among 18 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 16 give QEP Resources a green thumbs-up, and two give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on QEP Resources is outperform, with an average price target of $38.71.
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