QEP Resources, Inc. (NYSE:QEP) delivered a profit and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company.
QEP Resources, Inc. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share decreased 31.71% to $0.28 in the quarter versus EPS of $0.41 in the year-earlier quarter.
Revenue: Rose 15.47% to $696.5 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: QEP Resources, Inc. reported adjusted EPS income of $0.28 per share. By that measure, the company missed the mean analyst estimate of $0.3. It missed the average revenue estimate of $712.3 million.
Quoting Management: “We continue to make good progress on our efforts to grow QEP’s crude oil production,” said Chuck Stanley, Chairman, President and CEO of QEP Resources. “QEP Energy’s crude oil production increased 75% compared to a year ago. Excluding the contribution from our recent North Dakota acquisition, crude oil volumes grew 29% from last year. Crude oil represented 16% of total production, up from just 10% one year ago. While QEP Energy’s NGL sales volumes decreased 23% from the fourth quarter due to the impact of ethane rejection, NGL revenue was up slightly on a higher per-barrel NGL price resulting from a reduced volume of lower value ethane. Most importantly, the impact of increased crude oil volumes can be seen in QEP Energy’s financial performance, with Adjusted EBITDA up 21% from a year ago despite flat net realized natural gas prices.”
Key Stats (on next page)…
Revenue decreased 1.19% from $704.9 million in the previous quarter. EPS decreased 15.15% from $0.33 in the previous quarter.
Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.32 to a profit $0.35. For the current year, the average estimate has moved down from a profit of $1.49 to a profit of $1.48 over the last ninety days.
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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)