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How Has Murphy Oil Stock Reacted after Past Earnings Beats?

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Murphy Oil stock action after 3Q16 earnings

Murphy Oil (MUR) announced its 3Q16 earnings on October 26, 2016, after the market closed. That day, MUR stock rose 3.4% to close at $29.71. In after-hours price action, it traded as high as $29.71 before trading closed.

It’s worth noting that in the three months leading up to the earnings release, MUR stock rose ~4.0%, mainly due to the ~15.0% rise in crude oil (USO) (UWTI) (DWTI) prices during the same period.

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Murphy Oil stock behavior after past earnings beats

In the last seven quarters, Murphy Oil has beaten earnings expectations five times, in 1Q16, 4Q15, 3Q15, 2Q15, and 4Q14.

It reported its 1Q16 earnings after the market closed on May 4, 2016. In 1Q16, excluding the one-time items, the company reported a loss of $0.66 per share, which was $0.05 better than the consensus for a loss of $0.71 per share. Following the earnings release, in a contrarian reaction, better-than-expected earnings saw MUR stock fall ~12.0% in three sessions.

MUR reported its 4Q15 earnings after the market closed on January 27, 2016. Excluding the one-time items, MUR reported a loss of $0.76 per share, which was $0.55 better than the consensus for a loss of $1.31 per share. Following the earnings release, better-than-expected earnings saw MUR stock rise ~8.0% in two sessions.

In 3Q15, MUR reported a loss of $0.72 per share, which was $0.20 better than the consensus for a loss of $0.92 per share. Following the earnings release, better-than-expected earnings saw MUR stock rise ~15.0% in just six sessions.

A similar upward reaction was seen after its 4Q14 earnings, when MUR stock rose ~19.0% in 11 sessions after beating the consensus earnings estimate by $0.10 per share.

A contrarian reaction was seen after the 2Q15 earnings, when MUR stock fell ~10.0% in just six sessions after beating the consensus earnings estimate by $0.05 per share.

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A trend change for MUR stock

After losing ~78.0% of its market capitalization from July 2014 to January 2016, Murphy Oil (MUR) stock is finally showing signs of a new uptrend. In April 2016, the stock crossed its 200-day moving average for the first time in 19 months and is currently trading ~12.0% above that.

In April 2016, MUR stock had a higher high than in almost two years. Since it bottomed out in January 2016, MUR stock has risen a whopping ~117.0%.

Murphy Oil’s 2016 relative performance

So far in 2016, Murphy Oil is outperforming larger upstream companies from the S&P 500 (SPY). MUR has risen ~38.0%, whereas larger oil and gas producers such as Devon Energy (DVN), Occidental Petroleum (OXY), and EOG Resources (EOG) have risen ~27.0%, ~13.0%, and ~31.0%, respectively.

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