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Marathon Oil's Third Quarter Earnings Report
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MRO
Marathon Oil (NYSE:MRO) announced its results for the third quarter on November 6, 2012. Marathon Oil is an oil and natural gas exploration and production company with operations in North America, Africa, and Europe.
Investors should care about a company's quarterly earnings because it shows the state of the business over the past 90 days and provides guidance for the following 90 days. SEE: Earnings: Quality Means Everything
The Numbers: Though Marathon Oil's EPS fell short of estimates, the company's revenues managed to trump predictions. The company reported adjusted net income of 64 cents per share versus the 66 cents per share estimate and revenues of $4.02 billion versus the $3.36 billion estimate. Revenue climbed 9.7% from the same period last year. Revenue rose for a second quarter in a row as Marathon Oil's sales grew 1.4% to $3.75 billion in the second quarter as well. Marathon Oil reported net income of $450 million during the third quarter. This is 11.1% higher than the year-ago quarter. After posting a profit last quarter, the company breaks a streak of four consecutive quarters of year-over-year profit drops.
Management Quote: "Marathon Oil's producing assets exceeded expectations in the third quarter, driven by superior execution in our U.S. resource plays and continued strong reliability from our base assets," said Clarence P. Cazalot Jr., Marathon Oil chairman, president and CEO.
A Look Back: Net income has dropped 34.3% year-over-year on average across the last five quarters. Performance was hurt by a 60.5% decline in the second quarter from the year-earlier quarter.
Looking Ahead: Analysts appear increasingly negative about the company's results for the next quarter. The average estimate for the fourth quarter has moved down from 97 cents a share to 71 cents over the last 90 days. A decreasing earning estimate is a negative sign and usually leads to a drop in the stock price. The average estimate for the fiscal year is $2.87 per share, down from $3.81 90 days ago.
Investors should care about a company's quarterly earnings because it shows the state of the business over the past 90 days and provides guidance for the following 90 days. SEE: Earnings: Quality Means Everything
The Numbers: Though Marathon Oil's EPS fell short of estimates, the company's revenues managed to trump predictions. The company reported adjusted net income of 64 cents per share versus the 66 cents per share estimate and revenues of $4.02 billion versus the $3.36 billion estimate. Revenue climbed 9.7% from the same period last year. Revenue rose for a second quarter in a row as Marathon Oil's sales grew 1.4% to $3.75 billion in the second quarter as well. Marathon Oil reported net income of $450 million during the third quarter. This is 11.1% higher than the year-ago quarter. After posting a profit last quarter, the company breaks a streak of four consecutive quarters of year-over-year profit drops.
Management Quote: "Marathon Oil's producing assets exceeded expectations in the third quarter, driven by superior execution in our U.S. resource plays and continued strong reliability from our base assets," said Clarence P. Cazalot Jr., Marathon Oil chairman, president and CEO.
A Look Back: Net income has dropped 34.3% year-over-year on average across the last five quarters. Performance was hurt by a 60.5% decline in the second quarter from the year-earlier quarter.
Looking Ahead: Analysts appear increasingly negative about the company's results for the next quarter. The average estimate for the fourth quarter has moved down from 97 cents a share to 71 cents over the last 90 days. A decreasing earning estimate is a negative sign and usually leads to a drop in the stock price. The average estimate for the fiscal year is $2.87 per share, down from $3.81 90 days ago.
by
Investopedia Staff
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