ConocoPhillips' Third Quarter Earnings Report

ConocoPhillips (NYSE:COP) announced its results for the third quarter on October 25, 2012. An international energy company, ConocoPhillips operates under six segments: exploration and production, midstream, refining and marketing, LUKOIL investment, chemicals, and emerging businesses.

Earnings are perhaps the single most studied number in a company's financial statements because they show a company's profitability. SEE: 5 Tricks Companies Use During Earnings Season

The Numbers: ConocoPhillips announced adjusted net income of $1.44 per share versus the $1.19 per share estimate. The company's net income for the quarter fell 31.3% to $1.8 billion. Last quarter marks the third in a row in which the company's net income has fallen. Profits declined 33.4% in the second quarter and 3% in the first quarter.



Management Quote: "We performed well in our first full quarter as an independent E&P company," said Ryan Lance, chairman and chief executive officer. "Our production was on target, our growth projects and drilling programs are on track and our portfolio optimization plans continue to progress. Quarterly production, excluding the impact of dispositions, grew by 40 thousand BOE per day compared to the third quarter of 2011."



Looking Ahead: For next quarter, analysts have a more positive outlook about the company's expected results. The average estimate for the fourth quarter is $1.40 per share, up from $1.30 90 days ago. When analyst increase earnings estimates investors can assume business has been stronger than first thought and is an encouraging sign for investors. The average estimate for the fiscal year is $5.64 per share, a rise from $5.52 90 days ago.