Apache Misses Where it Counts

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Apache (NYS: APA) reported earnings on Feb. 14. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Apache beat slightly on revenues and missed estimates on earnings per share.

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


Margins dropped across the board.

Revenue details
Apache logged revenue of $4.39 billion. The 13 analysts polled by S&P Capital IQ predicted sales of $4.34 billion on the same basis. GAAP reported sales were the same as the prior-year quarter's.

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

EPS details
EPS came in at $2.27. The 23 earnings estimates compiled by S&P Capital IQ anticipated $2.31 per share. GAAP EPS of $1.64 for Q4 were 45% lower than the prior-year quarter's $2.97 per share.

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 80.5%, 340 basis points worse than the prior-year quarter. Operating margin was 38.3%, 1,090 basis points worse than the prior-year quarter. Net margin was 15.2%, 1,280 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $4.34 billion. On the bottom line, the average EPS estimate is $2.29.

Next year's average estimate for revenue is $17.90 billion. The average EPS estimate is $9.61.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 2,107 members out of 2,162 rating the stock outperform, and 55 members rating it underperform. Among 453 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 444 give Apache 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 Apache is outperform, with an average price target of $108.09.

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The article Apache Misses Where it Counts originally appeared on Fool.com.

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. TMFDisclosureHere

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