Concho Resources Increases Sales but Misses Estimates on Earnings
Concho Resources (NYS: CXO) reported earnings May 2. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended March 31 (Q1), Concho Resources beat expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue increased significantly and GAAP earnings per share dropped significantly.
Gross margins dropped, operating margins grew, net margins dropped.
Concho Resources logged revenue of $507.8 million. The 10 analysts polled by S&P Capital IQ foresaw sales of $485.4 million on the same basis. GAAP reported sales were 41% higher than the prior-year quarter's $360.8 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $1.05. The 21 earnings estimates compiled by S&P Capital IQ predicted $1.14 per share. GAAP EPS of $0.30 for Q1 were 27% lower than the prior-year quarter's $0.41 per share. (The prior-year quarter included $0.89 per share in earnings from discontinued operations.)
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 81.9%, 120 basis points worse than the prior-year quarter. Operating margin was 17.2%, 3,080 basis points better than the prior-year quarter. Net margin was 6.1%, 570 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $496.2 million. On the bottom line, the average EPS estimate is $1.17.
Next year's average estimate for revenue is $2.09 billion. The average EPS estimate is $4.97.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 236 members rating the stock outperform and 17 members rating it underperform. Among 52 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 48 give Concho Resources a green thumbs-up, and four give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Concho Resources is outperform, with an average price target of $123.63.
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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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