The Gory Details of Cabot Oil & Gas' Double Fumble
Cabot Oil & Gas (NYS: COG) reported earnings on July 24. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended June 30 (Q2), Cabot Oil & Gas missed estimates on revenue and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue improved and GAAP earnings per share contracted significantly.
Margins dropped across the board.
Cabot Oil & Gas logged revenue of $265.7 million. The four analysts polled by S&P Capital IQ anticipated a top line of $271.6 million on the same basis. GAAP reported sales were 10% higher than the prior-year quarter's $240.7 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 $0.05. The 20 earnings estimates compiled by S&P Capital IQ predicted $0.07 per share. GAAP EPS of $0.17 for Q2 were 35% lower than the prior-year quarter's $0.26 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 74.9%, 500 basis points worse than the prior-year quarter. Operating margin was 3.9%, 2,620 basis points worse than the prior-year quarter. Net margin was 13.5%, 920 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $314.8 million. On the bottom line, the average EPS estimate is $0.10.
Next year's average estimate for revenue is $1.21 billion. The average EPS estimate is $0.43.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 488 members out of 535 rating the stock outperform, and 47 members rating it underperform. Among 103 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 92 give Cabot Oil & Gas a green thumbs-up, and 11 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Cabot Oil & Gas is outperform, with an average price target of $42.67.
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The article The Gory Details of Cabot Oil & Gas' Double Fumble 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. 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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