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Newfield Exploration Beats Expectations But Takes A Step Back Anyway

Wednesday - 4/24/2013, 2:00am  ET

Newfield Exploration reported earnings on April 23. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), Newfield Exploration missed slightly on revenues and beat slightly on earnings per share.

Compared to the prior-year quarter, revenue dropped. Non-GAAP earnings per share contracted significantly. GAAP earnings per share shrank to a loss.

Margins dropped across the board.

Revenue details
Newfield Exploration reported revenue of $651.0 million. The five analysts polled by S&P Capital IQ expected a top line of $663.9 million on the same basis. GAAP reported sales were the same as the prior-year quarter's.

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 $0.45. The 20 earnings estimates compiled by S&P Capital IQ predicted $0.44 per share. Non-GAAP EPS of $0.45 for Q1 were 51% lower than the prior-year quarter's $0.91 per share. GAAP EPS were -$0.06 for Q1 versus $0.86 per share for the prior-year quarter.

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 63.4%, 560 basis points worse than the prior-year quarter. Operating margin was 22.3%, much worse than the prior-year quarter. Net margin was -1.2%, much worse than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $627.3 million. On the bottom line, the average EPS estimate is $0.41.

Next year's average estimate for revenue is $2.52 billion. The average EPS estimate is $1.73.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 320 members out of 343 rating the stock outperform, and 23 members rating it underperform. Among 84 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 81 give Newfield Exploration 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 Newfield Exploration is outperform, with an average price target of $34.47.

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This article was originally published as Newfield Exploration Beats Expectations But Takes A Step Back Anywayon Fool.com

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