It has been about a month since the last earnings report for Anadarko Petroleum Corporation (APC - Free Report) . Shares have added about 1.2% in that time frame.
Will the recent positive trend continue leading up to its next earnings release, or is APC due for a pullback? 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.
Anadarko Surpasses Q1 Earnings and Revenue Estimates
Anadarko Petroleum Corporation reported first-quarter 2018 earnings of 52 cents per share, beating the Zacks Consensus Estimate of 43 cents by 20.9%. In the year-ago quarter, the company had incurred a loss of 60 cents.
On a GAAP basis, Anadarko Petroleum’s earnings were 22 cents per share, rebounding from the prior-year quarter loss of 58 cents.
In the reported quarter, Anadarko Petroleum’s revenues of $3,045 million surpassed the Zacks Consensus Estimate of $2,979 million by 2.9%. However, revenues were down 19.2% year over year.
In the quarter, the company’s average daily sales volume was 643,000 barrels of oil equivalent per day (BOE/d). U.S. Onshore assets delivered sales volumes of 400,000 BOE/d on a divestiture-adjusted basis, an increase of 6.4% from the prior-year quarter.
The company’s total costs and expenses in the first quarter dropped 35.5% year over year to $2,494 million, primarily due to lower exploration and Oil and gas transportation expenses.
Interest expenses came in at $228 million, increasing 2.2% from $223 million a year ago quarter.
Anadarko Petroleum had cash and cash equivalents of $3,361 million as of Mar 31, 2018, down substantially from $4,553 million as of Dec 31, 2017.
Long-term debt as of Mar 31, 2018 was $15,643 million, reflecting an increase from $15,547 million as of Dec 31, 2017.
Its net cash flow from operating activities during the quarter was $1,430 million compared with $1,123 million recorded in the year-ago quarter.
Anadarko Petroleum expects average daily oil sales volume in the range of 615,000-640,000 BOE/d for second-quarter 2018.The company projects its total sales volume in the range of 56-58 million BOE/d for the quarter.
It expects capital expenditure in the range of $1,300-$1,500 million for the second quarter.
Anadarko Petroleum expects average daily oil sales volume in the range of 658,000-685,000 BOE/d for 2018.The company projects its total sales volume in the range of 240-250 million BOE/d for the year.
It expects 2018 capital expenditure in the range of $4,200-$4,600 million.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in fresh estimates. There have been five revisions higher for the current quarter compared to two lower.
Anadarko Petroleum Corporation Price and Consensus
Currently, APC has a great Growth Score of A, a grade with the same score on the momentum front. However, 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 A. If you aren't focused on one strategy, this score is the one you should be interested in.
Based on our scores, the stock is more suitable for growth and momentum investors than value investors.
Estimates have been broadly trending upward for the stock and the magnitude of these revisions looks promising. It comes with little surprise APC has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.