QEP Resources Beats on Both Top and Bottom Lines

QEP Resources (NYSE: QEP  ) reported earnings on Feb. 20. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), QEP Resources beat slightly on revenues and beat expectations on earnings per share.

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

Gross margins increased, operating margins contracted, net margins contracted.

Revenue details
QEP Resources logged revenue of $704.9 million. The nine analysts polled by S&P Capital IQ predicted a top line of $693.4 million on the same basis. GAAP reported sales were 24% lower than the prior-year quarter's $926.5 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 $0.33. The 16 earnings estimates compiled by S&P Capital IQ predicted $0.31 per share. Non-GAAP EPS of $0.33 for Q4 were 43% lower than the prior-year quarter's $0.58 per share. GAAP EPS were -$0.13 for Q4 compared to $0.00 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 51.3%, 220 basis points better than the prior-year quarter. Operating margin was -1.0%, 100 basis points worse than the prior-year quarter. Net margin was -3.3%, 330 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $690.1 million. On the bottom line, the average EPS estimate is $0.32.

Next year's average estimate for revenue is $2.85 billion. The average EPS estimate is $1.43.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 58 members out of 61 rating the stock outperform, and three members rating it underperform. Among 17 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 15 give QEP Resources a green thumbs-up, and two give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on QEP Resources is outperform, with an average price target of $38.63.

Is QEP Resources the right energy stock for you? Read about a handful of timely, profit-producing plays on expensive crude in "3 Stocks for $100 Oil." Click here for instant access to this free report.

• Add QEP Resources to My Watchlist.