Anadarko Petroleum Third Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Anadarko Petroleum (NYSE:APC) will unveil its latest earnings on Monday, October 29, 2012. 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 analyst estimate is for profit of 75 cents per share, a rise of 15.4% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from 77 cents. Between one and three months ago, the average estimate moved down. It has risen from 74 cents during the last month. For the year, analysts are projecting net income of $3.49 per share, a rise of 3.3% from last year.

Past Earnings Performance: Last quarter, the company reported profit of 85 cents per share versus a mean estimate of net income of. The company has beaten estimates for the past three quarters.

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A Look Back: In the second quarter, the company swung to a loss of $380 million (76 cents a share) from a profit of $544 million ($1.08) a year earlier, but beat analyst expectations. Revenue fell 12.4% to $3.22 billion from $3.68 billion.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.33 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. The company regressed in this liquidity measure from 1.78 in the first quarter to the last quarter driven in part by an increase in liabilities. Current liabilities increased 30.9% to $6.41 billion while assets decreased 1.9% to $8.55 billion.

Stock Price Performance: Between October 17, 2012 and October 23, 2012, the stock price dropped $5.25 (-7.3%), from $72.19 to $66.94. 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.

Key Stats:

On the top line, the company is looking to get back on the right track after last quarter’s drop snapped a string of revenue increases. Revenue rose 34.5% in the third quarter of the last fiscal year, 34.4% in the fourth quarter of the last fiscal year and 6%in the first quarter before dropping in the second quarter.

Wall St. Revenue Expectations: Analysts predict a rise of 6.3% in revenue from the year-earlier quarter to $3.4 billion.

Analyst Ratings: With 21 analysts rating the stock a buy, none rating it a sell and four 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)

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