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ConocoPhillips (COP) Down 2.6% Since Earnings Report: Can It Rebound?
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About a month has gone by since the last earnings report for ConocoPhillips (COP - Free Report) . Shares have lost about 2.6% 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 the most recent earnings report in order to get a better handle on the important catalysts.
Recent Earnings
ConocoPhillips reported third-quarter 2017 adjusted earnings of 16 cents per share that surpassed the Zacks Consensus Estimate of 9 cents. In the prior-year quarter, the company had posted a loss of 66 cents.
Revenues of $7,195 million beat the Zacks Consensus Estimate of $6,548 million. The top line also improved from $6,516 million in the year-ago quarter.
Strong third-quarter numbers were supported by higher oil and natural gas price realizations.
Exploration and Production
Production from continuing operations averaged 1,226 thousand barrels of oil equivalent per day (MBOED) in the quarter, as compared with 1,557 MBOED in the year-ago quarter. The deterioration was led by field decline and production outage owing to the impact of hurricanes.
Price Realization
Average realized price for oil was $49.39 per barrel, compared with $43.21 in the year-earlier quarter. Natural gas liquids were sold at $23.82 a barrel versus $16.18 a year ago. The price of natural gas was $4.11 per thousand cubic feet, compared with $3.05 in third-quarter 2016.
Financials
As of Sep 30, 2017, the company had total cash and cash equivalents of $6.9 billion and debt of $21 billion, with a debt-to-capitalization ratio of 41%. In the reported quarter, ConocoPhillips generated $1.1 billion in cash from operating activities. The company’s capital expenditures and investments totaled $1.1 billion and dividends payments grossed $324 million.
Total Expense
The company reported expenses of $6.5 billion in the third quarter, as compared with $8.2 billion in the July-September quarter of 2016.
Guidance
ConocoPhillips' fourth-quarter 2017 production guidance is pegged at the range of 1,195-1,235 MBOED, excluding production from Libya.
The company slashed its 2017 capital budget from the earlier projection of $4.8 billion to $4.5 billion.
How Have Estimates Been Moving Since Then?
Following the release, investors have witnessed an upward trend in fresh estimates. There have been three revisions higher for the current quarter compared to one lower.
At this time, the stock has an average Growth Score of C, however its Momentum is doing a lot better with an A. 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 aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Our style scores indicate that the stock is more suitable for momentum investors than growth investors.
Outlook
Estimates have been trending upward for the stock and the magnitude of these revisions also looks promising. It comes with little surprise that the stock has a Zacks Rank #1 (Strong Buy). We are expecting an above average return from the stock in the next few months.
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ConocoPhillips (COP) Down 2.6% Since Earnings Report: Can It Rebound?
About a month has gone by since the last earnings report for ConocoPhillips (COP - Free Report) . Shares have lost about 2.6% 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 the most recent earnings report in order to get a better handle on the important catalysts.
Recent Earnings
ConocoPhillips reported third-quarter 2017 adjusted earnings of 16 cents per share that surpassed the Zacks Consensus Estimate of 9 cents. In the prior-year quarter, the company had posted a loss of 66 cents.
Revenues of $7,195 million beat the Zacks Consensus Estimate of $6,548 million. The top line also improved from $6,516 million in the year-ago quarter.
Strong third-quarter numbers were supported by higher oil and natural gas price realizations.
Exploration and Production
Production from continuing operations averaged 1,226 thousand barrels of oil equivalent per day (MBOED) in the quarter, as compared with 1,557 MBOED in the year-ago quarter. The deterioration was led by field decline and production outage owing to the impact of hurricanes.
Price Realization
Average realized price for oil was $49.39 per barrel, compared with $43.21 in the year-earlier quarter. Natural gas liquids were sold at $23.82 a barrel versus $16.18 a year ago. The price of natural gas was $4.11 per thousand cubic feet, compared with $3.05 in third-quarter 2016.
Financials
As of Sep 30, 2017, the company had total cash and cash equivalents of $6.9 billion and debt of $21 billion, with a debt-to-capitalization ratio of 41%. In the reported quarter, ConocoPhillips generated $1.1 billion in cash from operating activities. The company’s capital expenditures and investments totaled $1.1 billion and dividends payments grossed $324 million.
Total Expense
The company reported expenses of $6.5 billion in the third quarter, as compared with $8.2 billion in the July-September quarter of 2016.
Guidance
ConocoPhillips' fourth-quarter 2017 production guidance is pegged at the range of 1,195-1,235 MBOED, excluding production from Libya.
The company slashed its 2017 capital budget from the earlier projection of $4.8 billion to $4.5 billion.
How Have Estimates Been Moving Since Then?
Following the release, investors have witnessed an upward trend in fresh estimates. There have been three revisions higher for the current quarter compared to one lower.
ConocoPhillips Price and Consensus
ConocoPhillips Price and Consensus | ConocoPhillips Quote
VGM Scores
At this time, the stock has an average Growth Score of C, however its Momentum is doing a lot better with an A. 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 aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Our style scores indicate that the stock is more suitable for momentum investors than growth investors.
Outlook
Estimates have been trending upward for the stock and the magnitude of these revisions also looks promising. It comes with little surprise that the stock has a Zacks Rank #1 (Strong Buy). We are expecting an above average return from the stock in the next few months.