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ConocoPhillips’ Earnings Beat Estimates in 1Q16

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ConocoPhillips’ 1Q16 earnings beat estimates

ConocoPhillips (COP) announced its 1Q16 earnings on April 28, 2016, before the Market opened. It reported adjusted EPS (earnings per share) of -$0.95 to -$0.10 better than Wall Street analysts’ consensus estimate of -$1.05. ConocoPhillips’ 1Q16 earnings are lower by $0.77 per share compared to -$0.18 per share in 1Q15. Even compared sequentially with 4Q15, ConocoPhillips’ 1Q16 earnings are lower by $0.05 per share.

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ConocoPhillips’ 1Q16 revenues miss estimates

For 1Q16, ConocoPhillips reported adjusted revenues of ~$5.02 billion, ~19% lower than Wall Street analysts’ consensus for revenues of ~$6.2 billion. ConocoPhillips’ 1Q16 revenues are lower by ~37%—compared to 1Q15 revenues of ~$8 billion. Even compared sequentially with 4Q15, its 1Q16 revenues are lower by ~26%.

ConocoPhillips’ earnings trend

As you can see in the above chart, ConocoPhillips reported much lower earnings in 2015 due to lower realized crude oil (USO) (UWTI) (DWTI) and natural gas (UNG) (BOIL) prices. In 1Q15, ConocoPhillips saw its adjusted earnings turn negative for the first time since 2013. Since 1Q13, ConocoPhillips beat earnings expectations ~69% of the time.

Due to the steep downward trend in energy prices, upstream companies such as Marathon Oil (MRO) and CONSOL Energy (CNX) reported an ~41% and ~18% YoY (year-over-year) decline in their 4Q15 adjusted revenues, respectively. However, Diamondback Energy (FANG) reported ~18% YoY increase in its 4Q15 adjusted revenues mainly because of much higher YoY production volumes. The Direxion Daily S&P Oil & Gas Exp. & Prod. Bear 3x Shares (DRIP) is a leveraged inverse ETF. It invests in oil and gas exploration and production companies.

In this series

In this series, we’ll look at the company’s operational performance, Wall Street analysts’ ratings, and how ConocoPhillips’ stock price reacted to past earnings beats.

In the next part, let’s take a look at ConocoPhillips’ operational performance for 1Q16.

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