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Why Is Anadarko Petroleum (APC) Up 0.3% Since Last Earnings Report?

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A month has gone by since the last earnings report for Anadarko Petroleum (APC - Free Report) . Shares have added about 0.3% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Anadarko Petroleum 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 Petroleum Beats Earnings Estimates in Q1

Anadarko Petroleum generated first-quarter 2019 adjusted earnings of 53 cents per share, which beat the Zacks Consensus Estimate of 30 cents by 76.67%. Also, the bottom lime improved by a penny from the year-ago quarter's number.

On a GAAP basis, the company incurred a loss of 3 cents in the quarter.

Total Revenues

In the reported quarter, Anadarko Petroleum’s revenues amounted to $3,218 million, which surpassed the Zacks Consensus Estimate of $2,942 million by 7.58%. Also, the top line increased 5.7% year over year. The upside was primarily driven by higher oil, natural gas as well as gathering, processing and marketing sales.

Operational Highlights

In the quarter, the company’s average daily sales volume was 715,000 barrels of oil equivalent per day (BOE/d), up 11.2% year over year. U.S. Onshore assets generated sales volumes of 465,000 BOE/d, up 16.25% from the prior-year quarter’s figure.

The company’s total costs and expenses in the first quarter fell 4.4% year over year to $2,384 million, primarily on lower exploration, general and administrative as well as impairments expenses along with reduced other operating expenses.

Interest expenses totalled $253 million, up from $228 million in the year-earlier quarter.

Financial Condition

The company had cash and cash equivalents of $2,026 million as of Mar 31, 2019, up from $1,295 million as of Dec 31, 2018.

Long-term debt as of Mar 31, 2019 was $15,903 million, down from $15,470 million as of Dec 31, 2018.

The company’s net cash flow from operating activities was $1,129 million compared with $1,430 million in the prior-year quarter.

 

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed an upward trend in fresh estimates. The consensus estimate has shifted 17.02% due to these changes.

VGM Scores

Currently, Anadarko Petroleum has an average Growth Score of C, however its Momentum Score is doing a bit better with a B. Charting a somewhat similar path, 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 B. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Anadarko Petroleum has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.


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