The 10-second takeaway
For the quarter ended June 30 (Q2), Apache beat expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded. Non-GAAP earnings per share dropped slightly. GAAP earnings per share expanded significantly.
Gross margins contracted, operating margins shrank, net margins grew.
Apache recorded revenue of $4.38 billion. The 16 analysts polled by S&P Capital IQ wanted to see sales of $4.29 billion on the same basis. GAAP reported sales were 12% higher than the prior-year quarter's $3.92 billion.
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 $2.01. The 26 earnings estimates compiled by S&P Capital IQ averaged $2.01 per share. Non-GAAP EPS of $2.01 for Q2 were 2.9% lower than the prior-year quarter's $2.07 per share. GAAP EPS of $2.54 for Q2 were 195% higher than the prior-year quarter's $0.86 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 79.3%, 220 basis points worse than the prior-year quarter. Operating margin was 38.5%, 30 basis points worse than the prior-year quarter. Net margin was 23.6%, much better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $4.34 billion. On the bottom line, the average EPS estimate is $2.13.
Next year's average estimate for revenue is $17.14 billion. The average EPS estimate is $8.27.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 2,121 members out of 2,180 rating the stock outperform, and 59 members rating it underperform. Among 390 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 380 give Apache a green thumbs-up, and 10 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Apache is outperform, with an average price target of $99.23.
Is Apache the right energy stock for you? Read about a handful of timely, profit-producing plays on expensive crude in "3 Stocks for $100 Oil." Click here for instant access to this free report.
- Add Apache to My Watchlist.
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. The Motley Fool owns shares of Apache. 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.