EQT Outruns Estimates Again

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

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

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

Margins contracted across the board.

Revenue details
EQT tallied revenue of $369.9 million. The five analysts polled by S&P Capital IQ predicted a top line of $361.3 million. Sales were 34% higher than the prior-year quarter's $371.2 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.

EPS details
Non-GAAP EPS came in at $0.60. The 16 earnings estimates compiled by S&P Capital IQ predicted $0.52 per share on the same basis. GAAP EPS of $1.19 for Q4 were 21% higher than the prior-year quarter's $0.49 per share.

Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 62.9%, 410 basis points worse than the prior-year quarter. Operating margin was 34.7%, 160 basis points worse than the prior-year quarter. Net margin was 18.2%, 150 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $412.8 million. On the bottom line, the average EPS estimate is $0.64.

Next year's average estimate for revenue is $1.61 billion. The average EPS estimate is $2.33.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 133 members out of 146 rating the stock outperform, and 13 members rating it underperform. Among 51 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 47 give EQT a green thumbs-up, and four 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 $70.66.

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