The 10-second takeaway
For the quarter ended March 31 (Q1), EOG Resources beat expectations on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly. Non-GAAP earnings per share expanded significantly. GAAP earnings per share expanded significantly.
Margins grew across the board.
EOG Resources recorded revenue of $3.36 billion. The seven analysts polled by S&P Capital IQ expected to see revenue of $3.12 billion on the same basis. GAAP reported sales were 29% higher than the prior-year quarter's $2.60 billion.
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 $1.80. The 29 earnings estimates compiled by S&P Capital IQ anticipated $1.18 per share. Non-GAAP EPS of $1.80 for Q1 were 54% higher than the prior-year quarter's $1.17 per share. GAAP EPS of $1.82 for Q1 were 52% higher than the prior-year quarter's $1.20 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 86.4%, much better than the prior-year quarter. Operating margin was 26.4%, 750 basis points better than the prior-year quarter. Net margin was 14.7%, 230 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $3.26 billion. On the bottom line, the average EPS estimate is $1.35.
Next year's average estimate for revenue is $13.43 billion. The average EPS estimate is $6.00.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 843 members out of 874 rating the stock outperform, and 31 members rating it underperform. Among 199 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 190 give EOG Resources a green thumbs-up, and nine give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on EOG Resources is outperform, with an average price target of $145.82.
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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.