SM Energy Earnings Are on Deck

SM Energy (NYSE: SM  ) is expected to report Q4 earnings on Feb. 20. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict SM Energy's revenues will grow 9.7% and EPS will decrease -60.0%.

The average estimate for revenue is $416.3 million. On the bottom line, the average EPS estimate is $0.24.

Revenue details
Last quarter, SM Energy reported revenue of $379.0 million. GAAP reported sales were 12% higher than the prior-year quarter's $346.7 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, non-GAAP EPS came in at $0.14. GAAP EPS were -$0.58 for Q3 versus $3.41 per share for the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 70.4%, 120 basis points worse than the prior-year quarter. Operating margin was -8.7%, 5,400 basis points worse than the prior-year quarter. Net margin was -9.9%, 7,630 basis points worse than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $1.49 billion. The average EPS estimate is $0.95.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 281 members out of 298 rating the stock outperform, and 17 members rating it underperform. Among 64 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 59 give SM Energy a green thumbs-up, and five give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on SM Energy is outperform, with an average price target of $71.97.

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