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Anadarko Petroleum Second Quarter Earnings Preview
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APC
Anadarko Petroleum (NYSE:APC) will release its second quarter earnings on Monday, July 30, 2012. Analysts have become increasingly bearish on the company over the last month, with the consensus analyst estimate slipping from 88 cents a share to the current prediction of earnings of 78 cents a share.
Earnings season is important to investors because it shows how much profit is left in the company's hand after deducting costs from revenue. SEE: 12 Things You Need To Know About Financial Statements
What to Expect: This is a drop from the consensus estimate three months ago of 87 cents. Analysts are expecting earnings of $3.51 per share for the fiscal year.
Revenue for the quarter is expected to be $3.38 billion, short of last year's reported figure of $3.68 billion by 8.1%. For the fiscal year, expected revenue is $13.97 billion.
Company Performance: Anadarko has reported revenue increases for the past four quarters. It rose 6% in the first quarter, 34.4% in the fourth quarter of the last fiscal year, 34.5% in the third quarter of the last fiscal year and 43.4% in the second quarter of the last fiscal year.
Price/earnings ratios (P/E ratios) provide a measure of the relative value of a stock. A high or low P/E ratio is not good or bad in and of itself, but a company trading with a high P/E ratio must continue to post strong financial performance or its stock price is likely to fall. SEE: How To Use The P/E Ratio And PEG To Tell The Future Of A Stock
Since April 26, 2012, the stock price has fallen 7.1% to $68.91 from $74.14. May 29, 2012 to June 4, 2012 marked one of Anadarko's worst periods, as the share price fell $7.33.
The Competition: Anadarko Petroleum is engaged in the exploration and production of oil and natural gas. Twenty-one of 25 analysts give Anadarko a buy rating. Opinion about the stock has worsened recently, as buy ratings have dropped slightly over the last three months.
The company's closest competitor in the oil and gas operations industry is ConocoPhillips (COP). Analysts are more optimistic about Anadarko than about ConocoPhillips. Only five out of 15 analysts rate the latter a buy.
Earnings season is important to investors because it shows how much profit is left in the company's hand after deducting costs from revenue. SEE: 12 Things You Need To Know About Financial Statements
What to Expect: This is a drop from the consensus estimate three months ago of 87 cents. Analysts are expecting earnings of $3.51 per share for the fiscal year.
Revenue for the quarter is expected to be $3.38 billion, short of last year's reported figure of $3.68 billion by 8.1%. For the fiscal year, expected revenue is $13.97 billion.
Company Performance: Anadarko has reported revenue increases for the past four quarters. It rose 6% in the first quarter, 34.4% in the fourth quarter of the last fiscal year, 34.5% in the third quarter of the last fiscal year and 43.4% in the second quarter of the last fiscal year.
Since April 26, 2012, the stock price has fallen 7.1% to $68.91 from $74.14. May 29, 2012 to June 4, 2012 marked one of Anadarko's worst periods, as the share price fell $7.33.
The Competition: Anadarko Petroleum is engaged in the exploration and production of oil and natural gas. Twenty-one of 25 analysts give Anadarko a buy rating. Opinion about the stock has worsened recently, as buy ratings have dropped slightly over the last three months.
The company's closest competitor in the oil and gas operations industry is ConocoPhillips (COP). Analysts are more optimistic about Anadarko than about ConocoPhillips. Only five out of 15 analysts rate the latter a buy.
by
Investopedia Staff
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