WPX Energy Misses on Both Revenue and Earnings

WPX Energy (NYSE: WPX  ) reported earnings on Feb. 28. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), WPX Energy missed estimates on revenues and missed expectations on earnings per share.

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

Gross margins grew, operating margins dropped, net margins increased.

Revenue details
WPX Energy recorded revenue of $572.0 million. The three analysts polled by S&P Capital IQ anticipated revenue of $634.7 million on the same basis. GAAP reported sales were 5.7% lower than the prior-year quarter's $877.0 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 -$0.20. The nine earnings estimates compiled by S&P Capital IQ predicted -$0.09 per share. Non-GAAP EPS were -$0.20 for Q4 compared to $0.14 per share for the prior-year quarter. GAAP EPS were -$0.53 for Q4 compared to -$1.71 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 45.0%, 290 basis points better than the prior-year quarter. Operating margin was -15.0%, much worse than the prior-year quarter. Net margin was -12.8%, much better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $768.9 million. On the bottom line, the average EPS estimate is -$0.15.

Next year's average estimate for revenue is $2.77 billion. The average EPS estimate is -$0.43.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 37 members out of 41 rating the stock outperform, and four members rating it underperform. Among 16 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 15 give WPX Energy a green thumbs-up, and one give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on WPX Energy is hold, with an average price target of $21.35.

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