Cabot Oil & Gas Beats on EPS but GAAP Results Lag
Cabot Oil & Gas (NYS: COG) reported earnings on Feb. 20. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Cabot Oil & Gas beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly and GAAP earnings per share contracted significantly.
Gross margins contracted, operating margins increased, net margins dropped.
Cabot Oil & Gas recorded revenue of $268.0 million. The six analysts polled by S&P Capital IQ anticipated sales of $258.5 million on the same basis. GAAP reported sales were 24% higher than the prior-year quarter's $216.9 million.
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 $0.20. The 19 earnings estimates compiled by S&P Capital IQ anticipated $0.16 per share on the same basis. GAAP EPS of $0.13 for Q4 were 43% lower than the prior-year quarter's $0.23 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 75.5%, 650 basis points worse than the prior-year quarter. Operating margin was 26.7%, 1,260 basis points better than the prior-year quarter. Net margin was 9.8%, 1,280 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $284.1 million. On the bottom line, the average EPS estimate is $0.15.
Next year's average estimate for revenue is $1.33 billion. The average EPS estimate is $0.78.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 484 members out of 532 rating the stock outperform, and 48 members rating it underperform. Among 121 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 114 give Cabot Oil & Gas a green thumbs-up, and seven 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 $47.69.
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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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