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Why Is ConocoPhillips (COP) Down 1.8% Since the Last Earnings Report?
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It has been about a month since the last earnings report for ConocoPhillips (COP - Free Report) . Shares have lost about 1.8% in that time frame, underperforming the market.
Will the recent negative trend continue leading up to the stock’s next earnings release, or is it due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Fourth-Quarter 2016 Results
ConocoPhillips reported fourth-quarter 2016 adjusted loss of $0.26 per share, narrower than the Zacks Consensus Estimate of a loss of $0.38 and the year-ago-quarter adjusted loss of $0.90. Significantly low expenses as well as higher commodity price realizations led to the improvement, which was partially offset by normal field declines and dispositions.
Revenues of $7,254 million missed the Zacks Consensus Estimate of $7,281 million. However, the top line improved from $6,766 million generated in the year-ago quarter.
Exploration and Production
Daily production from continuing operations averaged 1.596 million barrels of oil equivalent (MMBOE) in the quarter as against 1.599 MMBOE in the year-ago quarter. The underperformance stemmed from normal field declines and dispositions. The negatives were partially mitigated by new output from major developments.
Price Realization
Average realized price for oil was $47.05 per barrel compared with $40.35 in the year-earlier quarter. Natural gas liquids were sold at $21.82 per barrel as against $16.42 a year ago. The price of natural gas was $3.44 per thousand cubic feet compared with $3.36 in fourth-quarter 2015.
Financials
As of Dec 31, 2016, the company had total cash and cash equivalents of $3.6 billion and debt of $27.3 billion, with a debt-to-capitalization ratio of 44%. In the reported quarter, ConocoPhillips generated cash of $1.4 billion from operating activities. The company spent $999 million for capital expenditures and investments and paid dividends of $313 million.
Total Expenses
The company reported expenses of $7.3 billion in the fourth quarter as against $11.8 billion in the October–December quarter of 2015.
Guidance
ConocoPhillips' first-quarter 2017 production guidance is in the range of 1,540–1,580 MBOED. For 2017, ConocoPhillips projects output between 1,540 MBOED and 1,570 MBOED.
Also, the company anticipates 2017 capital expenditures of $5 billion.
How Have Estimates Been Moving Since Then?
Following the release, investors have witnessed an upward trend in fresh estimates. There has been one upward revision for the current quarter. In the past month, the consensus estimate has shifted by 124.35 % due to these changes.
At this time, the ConocoPhillips stock has a nice Growth Score of 'B', a grade with the same score on the momentum front. However, the stock was allocated a grade of 'D' on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregte VGM Score of 'C'. If you aren't focused on one strategy, this score is the one you should be interested in.
Zacks' style scores indicate that the stock is suitable for growth and momentum investors.
Outlook
Estimates have been broadly trending upward for the stock. The magnitude of these also revisions looks promising. Notably, the stock has a Zacks Rank #3 (Hold). We are expecting an inline return from the stock in the next few months.
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Why Is ConocoPhillips (COP) Down 1.8% Since the Last Earnings Report?
It has been about a month since the last earnings report for ConocoPhillips (COP - Free Report) . Shares have lost about 1.8% in that time frame, underperforming the market.
Will the recent negative trend continue leading up to the stock’s next earnings release, or is it due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Fourth-Quarter 2016 Results
ConocoPhillips reported fourth-quarter 2016 adjusted loss of $0.26 per share, narrower than the Zacks Consensus Estimate of a loss of $0.38 and the year-ago-quarter adjusted loss of $0.90. Significantly low expenses as well as higher commodity price realizations led to the improvement, which was partially offset by normal field declines and dispositions.
Revenues of $7,254 million missed the Zacks Consensus Estimate of $7,281 million. However, the top line improved from $6,766 million generated in the year-ago quarter.
Exploration and Production
Daily production from continuing operations averaged 1.596 million barrels of oil equivalent (MMBOE) in the quarter as against 1.599 MMBOE in the year-ago quarter. The underperformance stemmed from normal field declines and dispositions. The negatives were partially mitigated by new output from major developments.
Price Realization
Average realized price for oil was $47.05 per barrel compared with $40.35 in the year-earlier quarter. Natural gas liquids were sold at $21.82 per barrel as against $16.42 a year ago. The price of natural gas was $3.44 per thousand cubic feet compared with $3.36 in fourth-quarter 2015.
Financials
As of Dec 31, 2016, the company had total cash and cash equivalents of $3.6 billion and debt of $27.3 billion, with a debt-to-capitalization ratio of 44%. In the reported quarter, ConocoPhillips generated cash of $1.4 billion from operating activities. The company spent $999 million for capital expenditures and investments and paid dividends of $313 million.
Total Expenses
The company reported expenses of $7.3 billion in the fourth quarter as against $11.8 billion in the October–December quarter of 2015.
Guidance
ConocoPhillips' first-quarter 2017 production guidance is in the range of 1,540–1,580 MBOED. For 2017, ConocoPhillips projects output between 1,540 MBOED and 1,570 MBOED.
Also, the company anticipates 2017 capital expenditures of $5 billion.
How Have Estimates Been Moving Since Then?
Following the release, investors have witnessed an upward trend in fresh estimates. There has been one upward revision for the current quarter. In the past month, the consensus estimate has shifted by 124.35 % due to these changes.
ConocoPhillips Price and Consensus
ConocoPhillips Price and Consensus | ConocoPhillips Quote
VGM Scores
At this time, the ConocoPhillips stock has a nice Growth Score of 'B', a grade with the same score on the momentum front. However, the stock was allocated a grade of 'D' on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregte VGM Score of 'C'. If you aren't focused on one strategy, this score is the one you should be interested in.
Zacks' style scores indicate that the stock is suitable for growth and momentum investors.
Outlook
Estimates have been broadly trending upward for the stock. The magnitude of these also revisions looks promising. Notably, the stock has a Zacks Rank #3 (Hold). We are expecting an inline return from the stock in the next few months.