A month has gone by since the last earnings report for Anadarko Petroleum Corporation (APC - Free Report) . Shares have lost about 4.8% 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 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.
Anadarko's Q2 Loss Wider than Expected, '17 View Down
Anadarko reported second-quarter 2017 adjusted loss of $0.77 per share, far wider than the Zacks Consensus Estimate of a loss of $0.37. The net loss was also wider than the year-ago loss of $0.60.
On a GAAP basis, Anadarko Petroleum’s loss of $0.76 per share in the second quarter of 2017 was narrower than the prior-year loss of $1.36.
The difference between the GAAP and adjusted figures was due to a one-time gain of $0.01 or $8 million.
In the reported quarter, Anadarko Petroleum’s revenues of $2,716 million surpassed the Zacks Consensus Estimate of $2,300 million by 18.1%. Revenues were also up 41.8% year over year.
In the reported quarter, Anadarko Petroleum's average daily sales volume improved 12.0% year over year to 631,000 barrels of oil equivalent per day (BOE/d). The average sales volume was within the expected range of 626,000–648,000 BOE/d for the second quarter.
The company’s total costs and expenses increased 26.4% year over year to $2,841 million, primarily due to higher exploration charges.
Interest expenses came in at $227 million, increasing nearly 4.6% from $220 million incurred a year ago.
Anadarko Petroleum had cash and cash equivalents of $6,008 million as of Jun 30, 2017, up substantially from $ 3,184 million as of Dec 31, 2016.
Long-term debt as of Jun 30, 2017 was $15,436 million, reflecting an increase from $15,281 million as of Dec 31, 2016.
Anadarko Petroleum's net cash flow from operating activities during the quarter was $857 million compared with $1,229 million generated from operations for the quarter ended Jun 30, 2016.
Anadarko expects average daily sales volume in the range of 630,000–652,000 BOE/d for third-quarter 2017.
The company projects its 2017 sales volume in the range of 633,000–644,000 BOE/d, down from the prior expected range of 644,000–655,000 BOE/d for 2017. The drop was to accommodate production lost due to divestiture and deferred production from its Colorado assets.
The company expects capital expenditure to be in the range of $1,100–$1,200 million in the third quarter. It expects its 2017 capital expenditure in the range of $4,200–$4,400 million, down from the prior expected range of $4,500–$4,700 million for 2017.
How Have Estimates Been Moving Since Then?
Following the release, investors have witnessed a downward trend in fresh estimates. There has been one revision higher for the current quarter compared to five lower. While looking back an additional 30 days, we can see even more downside. There have been eight moves down in the last two months. In the past month, the consensus estimate has shifted lower by 86.6% due to these changes.
Anadarko Petroleum Corporation Price and Consensus
At this time, Anadarko's stock has a nice Growth Score of B, though it is lagging a lot on the momentum front with an F. The stock was allocated a grade of C on the value side, putting it in the middle 20% 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 growth investors than value investors.
Estimates have been broadly trending downward for the stock. The magnitude of this revision also indicates a downward shift. Notably, the stock has a Zacks Rank #3 (Hold). We expect in-line returns from the stock in the next few months.