The 10-second takeaway
For the quarter ended March 31 (Q1), Cimarex Energy met expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue expanded slightly. Non-GAAP earnings per share shrank significantly. GAAP earnings per share contracted significantly.
Margins dropped across the board.
Cimarex Energy chalked up revenue of $426.4 million. The 12 analysts polled by S&P Capital IQ expected a top line of $429.4 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 came in at $1.06. The 22 earnings estimates compiled by S&P Capital IQ anticipated $1.09 per share. Non-GAAP EPS of $1.06 for Q1 were 16% lower than the prior-year quarter's $1.26 per share. GAAP EPS of $1.04 for Q1 were 15% lower than the prior-year quarter's $1.23 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 77.9%, 180 basis points worse than the prior-year quarter. Operating margin was 33.9%, 620 basis points worse than the prior-year quarter. Net margin was 21.1%, 400 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $456.8 million. On the bottom line, the average EPS estimate is $1.19.
Next year's average estimate for revenue is $1.91 billion. The average EPS estimate is $5.03.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 513 members out of 535 rating the stock outperform, and 22 members rating it underperform. Among 105 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 99 give Cimarex Energy a green thumbs-up, and six give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Cimarex Energy is outperform, with an average price target of $83.05.
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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 owns shares of Cimarex Energy. 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.