Anadarko Petroleum Earnings: Here’s Why Shares are Up Now

Anadarko Petroleum Corporation (NYSE:APC) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are up 0.28%.

Anadarko Petroleum Corporation Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 23.53% to $1.05 in the quarter versus EPS of $0.85 in the year-earlier quarter.

Revenue: Rose 8.54% to $3.5 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Anadarko Petroleum Corporation reported adjusted EPS income of $1.05 per share. By that measure, the company beat the mean analyst estimate of $0.91. It missed the average revenue estimate of $3.57 billion.

Quoting Management: “We continue to have exceptional performance from our portfolio, as evidenced by the results delivered in the second quarter of 2013,” said Anadarko Chairman, President and CEO Al Walker. “Our U.S. onshore activities delivered year-over-year oil growth of 25 percent, averaging approximately 97,000 barrels per day during the quarter. We continued to drive significant improvements into our drilling and completions programs, and costs in each category were favorable to our expectations. We reached milestones at four of our large global oil projects, which are advancing on schedule and on budget, and we achieved a success rate of almost 70 percent in our deepwater exploration/appraisal program, including five new discoveries. We also strengthened the balance sheet, improving our net-debt-to-adjusted-capitalization ratio(2) to 29 percent compared to 34 percent at the end of 2012.”

Key Stats (on next page)…

Revenue decreased 10.17% from $3.89 billion in the previous quarter. EPS decreased 2.78% from $1.08 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $1.06 to a profit $1.09. For the current year, the average estimate has moved up from a profit of $4.08 to a profit of $4.33 over the last ninety days.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.

(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)