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Apache Third Quarter Earnings Preview
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Analysts are expecting a drop in profit for Apache (NYSE:APA) when it reports its results for the third quarter on Thursday, November 1, 2012. The company reported profit of $2.95 a year ago, but the current consensus estimate anticipates earnings per share of $2.27.
Earnings are perhaps the single most studied number in a company's financial statements because they show a company's profitability. SEE: Can Earnings Guidance Accurately Predict The Future?
What to Expect: Analysts are expecting Apache to announce earnings of $2.27 per share, 23.1% less than a year ago, when the company reported earnings of $2.95 per share.
The consensus estimate, while unchanged in the past month, is down from $2.36 three months ago. Analysts are projecting earnings of $9.93 per share for the fiscal year.
Revenue for the quarter is expected to be $4.07 billion, short of last year's reported figure of $4.33 billion by 6%. For the fiscal year, expected revenue is $16.87 billion.
Company Performance: In the second quarter, Apache broke a three-quarter growth streak with a year-over-year decline in revenue. It fell 8.4% in the second quarter after rising 15.6%in the first quarter, 25.1% in the fourth quarter of the last fiscal year and 43.7% in the third quarter of the last fiscal year.
The P/E ratio for APA is 9.9, below the industry average of 41.83. A low P/E ratio may indicate that the market expects relatively slower earnings growth. The P/E ratio has been used for ages by analysts and still remains one of the most relevant pieces of stock valuation. From the investor's perspective, a stock with a lower ratio is relatively cheaper than a stock with a higher ratio. SEE: Can Investors Trust the P/E Ratio?
The stock price has fallen 4.4% to $82.36 from $86.12 since July 31, 2012. Apache's worst recent stretch was when its stock price fell $4.59 per share between August 17, 2012 and September 5, 2012.
The Competition: Apache is an energy company that explores for, develops, and produces natural gas, crude oil, and natural gas liquids in six countries. Nineteen of 23 analysts give Apache a buy rating. This rating has been constant for the past three months.
The company's closest competitor in the oil and gas operations industry is Anadarko (APC). Analysts are less optimistic about Apache than about Anadarko. Twenty-one out of 25 analysts rate the latter a buy.
Earnings are perhaps the single most studied number in a company's financial statements because they show a company's profitability. SEE: Can Earnings Guidance Accurately Predict The Future?
What to Expect: Analysts are expecting Apache to announce earnings of $2.27 per share, 23.1% less than a year ago, when the company reported earnings of $2.95 per share.
The consensus estimate, while unchanged in the past month, is down from $2.36 three months ago. Analysts are projecting earnings of $9.93 per share for the fiscal year.
Revenue for the quarter is expected to be $4.07 billion, short of last year's reported figure of $4.33 billion by 6%. For the fiscal year, expected revenue is $16.87 billion.
Company Performance: In the second quarter, Apache broke a three-quarter growth streak with a year-over-year decline in revenue. It fell 8.4% in the second quarter after rising 15.6%in the first quarter, 25.1% in the fourth quarter of the last fiscal year and 43.7% in the third quarter of the last fiscal year.
The stock price has fallen 4.4% to $82.36 from $86.12 since July 31, 2012. Apache's worst recent stretch was when its stock price fell $4.59 per share between August 17, 2012 and September 5, 2012.
The Competition: Apache is an energy company that explores for, develops, and produces natural gas, crude oil, and natural gas liquids in six countries. Nineteen of 23 analysts give Apache a buy rating. This rating has been constant for the past three months.
The company's closest competitor in the oil and gas operations industry is Anadarko (APC). Analysts are less optimistic about Apache than about Anadarko. Twenty-one out of 25 analysts rate the latter a buy.
by
Investopedia Staff
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