QEP Resources Outruns Estimates Again

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QEP Resources (NYS: QEP) reported earnings on Feb. 22. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), QEP Resources beat expectations on revenues and crushed expectations on earnings per share.

Compared to the prior-year quarter, revenue increased significantly and GAAP earnings per share shrank to zero.

Margins shrank across the board.

Revenue details
QEP Resources recorded revenue of $853.3 million. The six analysts polled by S&P Capital IQ foresaw sales of $779.1 million on the same basis. GAAP reported sales were 49% higher than the prior-year quarter's $572.0 million.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Non-GAAP EPS came in at $0.58. The 15 earnings estimates compiled by S&P Capital IQ averaged $0.45 per share on the same basis. GAAP EPS dropped to zero from the prior-year quarter's $0.37.

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Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 56.7%, 650 basis points worse than the prior-year quarter. Operating margin was 1.9%, 2,000 basis points worse than the prior-year quarter. Net margin was 0.0%, 1,140 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $773.3 million. On the bottom line, the average EPS estimate is $0.43.

Next year's average estimate for revenue is $3.30 billion. The average EPS estimate is $2.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 45 members out of 46 rating the stock outperform, and one member rating it underperform. Among 16 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 16 give QEP Resources a green thumbs-up.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on QEP Resources is outperform, with an average price target of $46.39.

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At the time this article was published 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 ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. 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.

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