The 10-second takeaway
For the quarter ended March 31 (Q1), Continental Resources met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly. Non-GAAP earnings per share grew significantly. GAAP earnings per share grew significantly.
Gross margins contracted, operating margins grew, net margins grew.
Continental Resources reported revenue of $772.0 million. The 11 analysts polled by S&P Capital IQ anticipated sales of $772.3 million on the same basis. GAAP reported sales were 26% higher than the prior-year quarter's $564.2 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 $1.17. The 21 earnings estimates compiled by S&P Capital IQ anticipated $1.13 per share. Non-GAAP EPS of $1.17 for Q1 were 54% higher than the prior-year quarter's $0.76 per share. GAAP EPS of $0.76 for Q1 were 100% higher than the prior-year quarter's $0.38 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 79.9%, 230 basis points worse than the prior-year quarter. Operating margin was 38.0%, much better than the prior-year quarter. Net margin was 19.8%, 760 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $823.5 million. On the bottom line, the average EPS estimate is $1.20.
Next year's average estimate for revenue is $3.49 billion. The average EPS estimate is $5.15.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 703 members out of 734 rating the stock outperform, and 31 members rating it underperform. Among 111 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 102 give Continental 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 Continental Resources is outperform, with an average price target of $101.52.
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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.