Anadarko Petroleum Fourth Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Anadarko Petroleum (NYSE:APC) will unveil its latest earnings tomorrow, Monday, February 4, 2013. Anadarko Petroleum is engaged in the exploration and production of oil and natural gas.

Anadarko Petroleum Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of 74 cents per share, a decline of 12.9% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from 84 cents. Between one and three months ago, the average estimate moved down. It also has dropped from 75 cents during the last month. Analysts are projecting profit to rise by 0.6% versus last year to $3.36.

Past Earnings Performance: The company has beaten estimates the last four quarters and is coming off a quarter where it topped forecasts by 8 cents, reporting profit of 84 cents per share against a mean estimate of net income of 76 cents per share.

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A Look Back: In the third quarter, the company swung to a profit of $121 million (24 cents a share) from a loss of $3.05 billion ($6.12) a year earlier, beating analyst estimates. Revenue fell 1.5% to $3.33 billion from $3.38 billion.

Here’s how Anadarko Petroleum Corp traded following its last earnings report 3 months ago and leading up to its upcoming earnings report this week:

apc

Stock Price Performance: Between October 31, 2012 and January 29, 2013, the stock price rose $11.75 (17.1%), from $68.81 to $80.56. The stock price saw one of its best stretches over the last year between July 10, 2012 and July 18, 2012, when shares rose for seven straight days, increasing 12.1% (+$7.86) over that span. It saw one of its worst periods between September 14, 2012 and September 26, 2012 when shares fell for nine straight days, dropping 9% (-$6.83) over that span.

Wall St. Revenue Expectations: Analysts are projecting a decline of 12% in revenue from the year-earlier quarter to $3.38 billion.

Key Stats:

On the top line, the company is hoping to use this earnings announcement to snap a string of two-straight quarters of revenue declines. Revenue fell 12.4% in the second quarter and dropped again in the third quarter.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.52 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, for every dollar the company owes in the short term, it has that figure available in assets that can be converted to cash in the short term.

Analyst Ratings: With 22 analysts rating the stock a buy, none rating it a sell and three rating the stock a hold, there are indications of a bullish stance by analysts.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)