What to Expect from Continental Resources

Checking expectations

Seth Jayson
Seth Jayson
May 6, 2013 at 12:00AM
Other

Continental Resources (NYSE: CLR) is expected to report Q1 earnings on May 8. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Continental Resources's revenues will expand 42.9% and EPS will grow 48.7%.

The average estimate for revenue is $772.3 million. On the bottom line, the average EPS estimate is $1.13.

Revenue details
Last quarter, Continental Resources notched revenue of $679.3 million. GAAP reported sales were 31% higher than the prior-year quarter's $516.7 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, non-GAAP EPS came in at $1.04. GAAP EPS were $1.20 for Q4 against -$0.62 per share for the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 80.8%, 150 basis points worse than the prior-year quarter. Operating margin was 43.7%, much better than the prior-year quarter. Net margin was 32.5%, much better than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $3.50 billion. The average EPS estimate is $5.11.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 704 members out of 735 rating the stock outperform, and 31 members rating it underperform. Among 106 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 98 give Continental Resources a green thumbs-up, and eight give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Continental Resources is outperform, with an average price target of $97.67.

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