The Gory Details on EQT's Double Miss

Seth Jayson, The Motley Fool
Updated

EQT (NYS: EQT) reported earnings on July 26. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended June 30 (Q2), EQT missed estimates on revenues and earnings per share.

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


Margins shrank across the board.

Revenue details
EQT notched revenue of $298.1 million. The five analysts polled by S&P Capital IQ expected to see sales of $322.3 million on the same basis. GAAP reported sales were 3.2% lower than the prior-year quarter's $349.0 million.

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 $0.21. The 14 earnings estimates compiled by S&P Capital IQ predicted $0.33 per share. GAAP EPS of $0.21 for Q2 were 64% lower than the prior-year quarter's $0.58 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 71.3%, 810 basis points worse than the prior-year quarter. Operating margin was 24.1%, 1,980 basis points worse than the prior-year quarter. Net margin was 9.3%, 1,580 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $345.3 million. On the bottom line, the average EPS estimate is $0.34.

Next year's average estimate for revenue is $1.42 billion. The average EPS estimate is $1.67.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 143 members out of 157 rating the stock outperform, and 14 members rating it underperform. Among 48 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 45 give EQT a green thumbs-up, and three give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on EQT is outperform, with an average price target of $61.73.

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The article The Gory Details on EQT's Double Miss 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 the co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools don't 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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