The Gory Details on Hess' Double Miss
Hess (NYS: HES) reported earnings on April 25. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended March 31 (Q1), Hess missed estimates on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue contracted and GAAP earnings per share dropped significantly.
Gross margins improved, operating margins contracted, net margins dropped.
Hess tallied revenue of $9.75 billion. The three analysts polled by S&P Capital IQ wanted to see revenue of $10.37 billion on the same basis. GAAP reported sales were 3.9% lower than the prior-year quarter's $10.14 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $1.50. The 16 earnings estimates compiled by S&P Capital IQ predicted $1.54 per share on the same basis. GAAP EPS of $1.61 for Q1 were 41% lower than the prior-year quarter's $2.74 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 24.6%, 200 basis points better than the prior-year quarter. Operating margin was 10.3%, 160 basis points worse than the prior-year quarter. Net margin was 5.6%, 360 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $11.06 billion. On the bottom line, the average EPS estimate is $1.58.
Next year's average estimate for revenue is $38.94 billion. The average EPS estimate is $6.71.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 923 members out of 956 rating the stock outperform, and 33 members rating it underperform. Among 213 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 205 give Hess a green thumbs-up, and eight give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Hess is outperform, with an average price target of $78.76.
How did Hess treat you during the oil spike in 2008 and the subsequent bust? More importantly, what are you doing to prepare for the next spike that some experts believe another spike may be just around the corner? Prepare yourself with a well-positioned energy stock we profile in "The Only Energy Stock You'll Ever Need." Click here for instant access to this free report.
- Add Hess to My Watchlist.
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.