Anadarko Petroleum Earnings: Accelerating Profit Pushes Stock Up

Anadarko Petroleum Corporation (NYSE:APC) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 0.48%.

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Anadarko Petroleum Corporation Earnings Cheat Sheet

Results: Net income increased to $457 million (91 cents per diluted share) in the quarter versus a net loss of $358 million in the year-earlier quarter.

Revenue: Decreased 11.17% to $3.41 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Anadarko Petroleum Corporation reported adjusted net income of 91 cents per share. By that measure, the company beat the mean analyst estimate of $0.72. It beat the average revenue estimate of $3.38 billion.

Quoting Management: “Anadarko’s outstanding operational results in 2012 demonstrated the flexibility and strength of our capital-efficient portfolio,” said Anadarko President and CEO Al Walker. “We achieved record production, highlighted by a 25,000 barrel-per-day increase in higher-margin liquids sales volumes over 2011, while continuing to safely improve efficiencies in every segment of our business. We achieved a reserve-replacement ratio of 162 percent, before the effects of price revisions, at competitive costs, and we remain on track to meet our goal of 3 billion BOE of proved reserves by the end of 2014…

…We also made significant progress advancing several large-scale development projects, contributing to our transparent future growth. We delivered a 67-percent success rate in 2012 from our deepwater exploration and appraisal drilling program, where we’ve had a very strong three-year average success rate of almost 70 percent. The combination of industry-leading deepwater exploration success and strong, capital-efficient operating results gives Anadarko a track record our employees are very proud of and look forward to building upon in 2013.”

Key Stats:

Revenue increased 2.34% from $3.33 billion in the previous quarter. Net income increased 277.69% from $121 million in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.93 to a profit $0.83. For the current year, the average estimate has moved down from a profit of $3.37 to a profit of $3.33 over the last ninety days.

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(Company fundamentals provided by Xignite Financials.)