How The Wheels Came Off Pioneer Natural Resources's Bus

Pioneer Natural Resources (NYS: PXD) reported earnings on Oct. 31. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Pioneer Natural Resources whiffed on revenues and whiffed on earnings per share.

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


Margins contracted across the board.

Revenue details
Pioneer Natural Resources logged revenue of $603.4 million. The 14 analysts polled by S&P Capital IQ wanted to see net sales of $779.5 million on the same basis. GAAP reported sales were 3.5% lower than the prior-year quarter's $625.4 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 $0.82. The 25 earnings estimates compiled by S&P Capital IQ forecast $0.99 per share. GAAP EPS of $0.15 for Q3 were 95% lower than the prior-year quarter's $2.95 per share.

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 62.6%, 1,180 basis points worse than the prior-year quarter. Operating margin was 8.3%, 8,980 basis points worse than the prior-year quarter. Net margin was 3.2%, 5,300 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $828.2 million. On the bottom line, the average EPS estimate is $1.12.

Next year's average estimate for revenue is $3.17 billion. The average EPS estimate is $4.13.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 289 members out of 315 rating the stock outperform, and 26 members rating it underperform. Among 72 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 66 give Pioneer Natural Resources a green thumbs-up, and six give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Pioneer Natural Resources is outperform, with an average price target of $122.21.

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The article How The Wheels Came Off Pioneer Natural Resources's Bus originally appeared on Fool.com.

Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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