A decline in crude input demand from refineries aided inventory build. This is typical as refineries enter the refinery maintenance season.
Crude inventory levels have once again crushed analysts’ expectations, increasing 7.7 MMbbls in the week ended February 13. Expectations were 3 MMbbls.
Analysts expected an increase of ~3 million barrels (or MMbbls) in crude oil inventories last week.
Overall, Amazon had a great 4Q14. However, one good quarter doesn’t mean that the company can produce better-than-expected results in future quarters.
Amazon is now looking to produce and acquire 12 original movies a year. This should help the time a movie takes to premiere on Amazon Prime.
During the 4Q14 earnings call, management mentioned that Prime membership worldwide grew by a year-over-year rate of 53%.
The Amazon Web Services business aims at leveraging the fast-growing cloud services market, which should grow to $127.5 billion in 2018.
Important news that cheered investors was that Amazon will start announcing Amazon Web Services (or AWS) results separately starting 1Q15.
Reducing oil prices are good news for e-commerce players. Oil prices have declined by about 60% over the past six months.
The company increased the number of its sortation centers from eight to fifteen last year. Sortation centers are much closer to customers.
The main reason for Amazon’s gross margin increase was the increasing proportion of third-party sellers who sell their products on Amazon.
Amazon (AMZN) not only surprised analysts with its earnings per share but also with its operating profits.
Amazon announced its 4Q14 earnings on January 29, 2015. Amazon’s stock has continued to increase from $312 to the current price of around $384.
Following Apache’s (APA) 4Q14 results, Apache’s stock jumped ~4%. This is likely due to its earnings beat and its lower planned expenditures for 2015.
In 4Q14, Apache sold its Wheatstone and Kitimat LNG assets in Australia. The company called this its “top strategic priority” in 2014.
Apache (APA) expects to spend $3.8 billion in capex (capital expenditures) in 2015. This is 60% less than 2014’s capital budget.
Apache (APA) announced it will slash its rig counts from 91 rigs operated in the third quarter to 27 rigs by the end of February.
Operational performance in the Permian was up 26%. Gulf Coast (Eagle Ford) increased 8%, and the Central Region (Texas and Oklahoma) remained flat at 1%.
Apache’s adjusted 4Q14 earnings totaled $404 million, or $1.07 per share, on a revenue of $2.95 billion, which exceeded analysts’ estimates.
Let’s look at MGM Resorts’ (MGM) valuation. MGM’s consensus revenue estimates, given by Wall Street analysts, are expected to increase by 7.2% in 2016.