The 10-second takeaway
For the quarter ended June 30 (Q2), QEP Resources missed estimates on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue grew significantly. Non-GAAP earnings per share increased. GAAP earnings per share grew.
Margins grew across the board.
QEP Resources logged revenue of $751.0 million. The five analysts polled by S&P Capital IQ looked for revenue of $823.9 million on the same basis. GAAP reported sales were 50% higher than the prior-year quarter's $499.3 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
EPS came in at $0.34. The 18 earnings estimates compiled by S&P Capital IQ averaged $0.35 per share. Non-GAAP EPS of $0.34 for Q2 were 9.7% higher than the prior-year quarter's $0.31 per share. GAAP EPS of $0.99 for Q2 were much higher than the prior-year quarter's $0.00 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
For the quarter, gross margin was 58.3%, 760 basis points better than the prior-year quarter. Operating margin was 29.4%, much better than the prior-year quarter. Net margin was 23.8%, much better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $853.4 million. On the bottom line, the average EPS estimate is $0.42.
Next year's average estimate for revenue is $3.24 billion. The average EPS estimate is $1.54.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 54 members out of 57 rating the stock outperform, and three members rating it underperform. Among 20 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 18 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 $37.31.
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