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Marathon (MRO) Q4 Earnings on Deck: Here's How It Will Fare
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Marathon Oil Corporation (MRO - Free Report) is set to release fourth-quarter results on Feb 21. The current Zacks Consensus Estimate for the to-be-reported quarter is a profit of 62 cents per share on revenues of $1.7 billion.
Let’s delve into the factors that might have influenced the independent oil and gas producer’s performance in the December quarter. But it’s worth taking a look at MRO’s previous-quarter results first.
Highlights of Q3 Earnings & Surprise History
In the last reported quarter, the Houston, TX-based upstream player beat the consensus mark on strong domestic oil and gas production, to go with lower unit costs. MRO had reported adjusted earnings per share of 77 cents, beating the Zacks Consensus Estimate of 69 cents. Revenues of $1.8 billion generated by the firm also came in 3.4% above the Zacks Consensus Estimate.
Marathon Oil beat the Zacks Consensus Estimate for earnings in each of the last four quarters, resulting in an earnings surprise of 12.7%, on average. This is depicted in the graph below:
The Zacks Consensus Estimate for the fourth-quarter bottom line has remained unchanged in the past seven days. The estimated figure indicates a 29.6% deterioration year over year. The Zacks Consensus Estimate for revenues, meanwhile, suggests a 4.3% decrease from the year-ago period.
Factors to Consider
Lower oil and natural gas realizations are likely to have hurt Marathon Oil’s revenues and cash flows. Going by our model, MRO’s fourth-quarter key U.S. E&P segment’s realized average liquids price (crude oil and condensate) is pegged at $77.80 per barrel — down from the year-earlier level of $84.29. Additionally, our projection for the average realized natural gas prices reflects a 42.4% year-over-year drop.
On a further bearish note, the increase in Marathon Oil’s costs might have dented its to-be-reported bottom line. In particular, our estimate for production cost is pegged at $201.2 million, indicating an 11.2% increase from $181 million reported in the year-ago quarter. Our model also predicts the company’s total expenses to go up 9.6% year over year to $1.1 billion. The upward cost trajectory could be attributed to the ongoing inflationary environment and a tight labor market.
But giving some respite to the company, Marathon Oil is expected to have benefited from higher output during the quarter. Considering MRO’s impressive production profile from its high-margin U.S. resource plays (Eagle Ford, Bakken, Oklahoma and Permian), our expectation for the company’s fourth-quarter volume is pegged at some 396,000 barrels of oil equivalent per day (BOE/d), up 19.1% from the year-ago quarter’s level of 333,000 BOE/d.
What Does Our Model Say?
The proven Zacks model does not conclusively show that Marathon Oil is likely to beat estimates in the second quarter. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of beating estimates. But that’s not the case here.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, for this company is -1.78%.
Zacks Rank: MRO currently carries a Zacks Rank #5 (Strong Sell).
Stocks to Consider
While an earnings beat looks uncertain for Marathon Oil, here are some firms that you may want to consider on the basis of our model:
Ardelyx, Inc. (ARDX - Free Report) has an Earnings ESP of +9.80% and a Zacks Rank #2. The firm is scheduled to release earnings on Feb 22.
The 2024 Zacks Consensus Estimate for Ardelyx indicates 17.1% year-over-year earnings per share growth. It has a trailing four-quarter earnings surprise of 160.6%, on average. Valued at around $2.1 billion, ARDX has surged 197.4% in a year.
Inter Parfums, Inc. (IPAR - Free Report) has an Earnings ESP of +5.71% and a Zacks Rank #2. The firm is scheduled to release earnings on Feb 27.
The 2024 Zacks Consensus Estimate for Inter Parfums indicates 8.6% year-over-year earnings per share growth. It has a trailing four-quarter earnings surprise of 45.7%, on average. Valued at around $4.9 billion, IPAR has gained 28.6% in a year.
Cheniere Energy (LNG - Free Report) has an Earnings ESP of +5.55% and a Zacks Rank #3. The firm is scheduled to release earnings on Feb 22.
Cheniere Energy beat the Zacks Consensus Estimate for earnings in three of the last four quarters and missed in the other. It has a trailing four-quarter earnings surprise of 92%, on average. Valued at around $38.2 billion, LNG has gained 10.7% in a year.
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Marathon (MRO) Q4 Earnings on Deck: Here's How It Will Fare
Marathon Oil Corporation (MRO - Free Report) is set to release fourth-quarter results on Feb 21. The current Zacks Consensus Estimate for the to-be-reported quarter is a profit of 62 cents per share on revenues of $1.7 billion.
Let’s delve into the factors that might have influenced the independent oil and gas producer’s performance in the December quarter. But it’s worth taking a look at MRO’s previous-quarter results first.
Highlights of Q3 Earnings & Surprise History
In the last reported quarter, the Houston, TX-based upstream player beat the consensus mark on strong domestic oil and gas production, to go with lower unit costs. MRO had reported adjusted earnings per share of 77 cents, beating the Zacks Consensus Estimate of 69 cents. Revenues of $1.8 billion generated by the firm also came in 3.4% above the Zacks Consensus Estimate.
Marathon Oil beat the Zacks Consensus Estimate for earnings in each of the last four quarters, resulting in an earnings surprise of 12.7%, on average. This is depicted in the graph below:
Marathon Oil Corporation Price and EPS Surprise
Marathon Oil Corporation price-eps-surprise | Marathon Oil Corporation Quote
Trend in Estimate Revision
The Zacks Consensus Estimate for the fourth-quarter bottom line has remained unchanged in the past seven days. The estimated figure indicates a 29.6% deterioration year over year. The Zacks Consensus Estimate for revenues, meanwhile, suggests a 4.3% decrease from the year-ago period.
Factors to Consider
Lower oil and natural gas realizations are likely to have hurt Marathon Oil’s revenues and cash flows. Going by our model, MRO’s fourth-quarter key U.S. E&P segment’s realized average liquids price (crude oil and condensate) is pegged at $77.80 per barrel — down from the year-earlier level of $84.29. Additionally, our projection for the average realized natural gas prices reflects a 42.4% year-over-year drop.
On a further bearish note, the increase in Marathon Oil’s costs might have dented its to-be-reported bottom line. In particular, our estimate for production cost is pegged at $201.2 million, indicating an 11.2% increase from $181 million reported in the year-ago quarter. Our model also predicts the company’s total expenses to go up 9.6% year over year to $1.1 billion. The upward cost trajectory could be attributed to the ongoing inflationary environment and a tight labor market.
But giving some respite to the company, Marathon Oil is expected to have benefited from higher output during the quarter. Considering MRO’s impressive production profile from its high-margin U.S. resource plays (Eagle Ford, Bakken, Oklahoma and Permian), our expectation for the company’s fourth-quarter volume is pegged at some 396,000 barrels of oil equivalent per day (BOE/d), up 19.1% from the year-ago quarter’s level of 333,000 BOE/d.
What Does Our Model Say?
The proven Zacks model does not conclusively show that Marathon Oil is likely to beat estimates in the second quarter. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of beating estimates. But that’s not the case here.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, for this company is -1.78%.
Zacks Rank: MRO currently carries a Zacks Rank #5 (Strong Sell).
Stocks to Consider
While an earnings beat looks uncertain for Marathon Oil, here are some firms that you may want to consider on the basis of our model:
Ardelyx, Inc. (ARDX - Free Report) has an Earnings ESP of +9.80% and a Zacks Rank #2. The firm is scheduled to release earnings on Feb 22.
You can see the complete list of today’s Zacks #1 Rank stocks here.
The 2024 Zacks Consensus Estimate for Ardelyx indicates 17.1% year-over-year earnings per share growth. It has a trailing four-quarter earnings surprise of 160.6%, on average. Valued at around $2.1 billion, ARDX has surged 197.4% in a year.
Inter Parfums, Inc. (IPAR - Free Report) has an Earnings ESP of +5.71% and a Zacks Rank #2. The firm is scheduled to release earnings on Feb 27.
The 2024 Zacks Consensus Estimate for Inter Parfums indicates 8.6% year-over-year earnings per share growth. It has a trailing four-quarter earnings surprise of 45.7%, on average. Valued at around $4.9 billion, IPAR has gained 28.6% in a year.
Cheniere Energy (LNG - Free Report) has an Earnings ESP of +5.55% and a Zacks Rank #3. The firm is scheduled to release earnings on Feb 22.
Cheniere Energy beat the Zacks Consensus Estimate for earnings in three of the last four quarters and missed in the other. It has a trailing four-quarter earnings surprise of 92%, on average. Valued at around $38.2 billion, LNG has gained 10.7% in a year.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.