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How Murphy Oil’s Stock Price Reacted to Past Earnings

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Murphy Oil’s stock price action

After losing ~78% of its market capitalization from July 2014 to January 2016, Murphy Oil’s (MUR) stock price is finally showing signs of a new uptrend. In April 2016, Murphy Oil’s stock crossed the 200-day moving average for the first time in 19 months and is currently trading ~25% above it.

In April, Murphy Oil’s stock price also made a higher high in almost two years. Since its January 2016 bottom, Murphy Oil’s stock price is up by a whopping ~132%.

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Murphy Oil’s relative performance

Recently, MUR has shown better relative strength when compared with other crude oil (USO) and natural gas (UNG) producers. In the last three months, Murphy Oil’s stock price has increased by ~11%.

Compare this with the SPDR S&P Oil and Gas Exploration & Production ETF (XOP), which is up by ~6% during same period.

Murphy Oil’s YTD performance

For 2016, MUR is outperforming bigger upstream companies from S&P 500 (SPY). For 2016, MUR is up by ~47%. However, larger oil and gas producers like Occidental Petroleum (OXY), Pioneer Natural Resources (PXD), and EOG Resources (EOG) are up by ~17%, ~25%, and ~20%, respectively.

Murphy Oil’s stock price performance after past earnings

Murphy Oil reported its 1Q16 earnings after the Market closed on May 4, 2016. In 1Q16, excluding the one-time items, Murphy Oil reported a loss of $0.66 per share, $0.05 better than the consensus for loss of $0.71 per share.

Following the earnings release, in a contrarian reaction, better-than-expected earnings saw Murphy Oil’s stock price decrease by ~12% in the three sessions.

MUR reported its 4Q15 earnings after the Market closed on January 27, 2016. In 4Q15, excluding the one-time items, MUR reported a loss of $0.76 per share, $0.55 better than the consensus for loss of $1.31 per share. Following the earnings release, better-than-expected earnings saw Murphy Oil’s stock price increase by ~8% in the two sessions.

In 3Q15 earnings, MUR reported a loss of $0.72 per share, $0.20 better than consensus for loss of $0.92 per share. Following the earnings release, better-than-expected earnings saw MUR’s stock price increase by ~15% in just six sessions.

A similar upward reaction was observed after its 4Q14 earnings also, when MUR’s stock price increased by ~19% in just 11 sessions after beating the consensus earnings estimates by $0.10 per share.

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