How Did Anadarko Stock Perform after Its 2Q17 Earnings?
Anadarko’s stock performance
After Anadarko Petroleum’s (APC) 2Q17 earnings release on July 24, 2017, APC stock fell ~1.4% in pre-market trading on July 25. APC’s stock has fallen ~37.1% YoY (year-over-year).
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It’s been a tough year for the energy sector. Crude oil prices have fallen ~11.5% since the beginning of the year, while natural gas prices have fallen ~13%. The energy sector or the XLE has fallen ~15% YTD (year-to-date).
Performance versus SPY
Needless to say, both XLE and Anadarko Petroleum have underperformed the SPDR S&P 500 ETF (SPY), which has risen ~10% YTD. The energy sector makes up ~7.0% of SPY.
Anadarko’s stock fall on July 25 before the market opened is likely the result of its worse-than-expected earnings reported for 2Q17. Markets seemed to have ignored APC’s better-than-expected revenue in 2Q17. (To know more about the company’s 2Q17 performance, read Parts 1 and 2 of this series.)
As we’ve discussed, weak crude oil prices have likely been pulling down the stock. But on July 24, crude oil prices closed 1.2% higher. Still, like APC’s upbeat revenue, markets seem to have ignored the upward movement in crude oil prices as well.