Apache Earnings: Here’s Why Investors Like These Results

Apache Corp. (NYSE:APA) delivered a profit and met 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 2.18%.

Apache Corp. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 2.9% to $2.01 in the quarter versus EPS of $2.07 in the year-earlier quarter.

Revenue: Rose 10.35% to $4.38 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Apache Corp. reported adjusted EPS income of $2.01 per share. By that measure, the company missed the mean analyst estimate of $2.01. It beat the average revenue estimate of $4.28 billion.

Quoting Management: “Utilizing existing infrastructure within the Forties Field area enables Apache to bring these smaller discoveries on production in a cost-effective manner for the benefit of all stakeholders,” said James L. House, region vice president and managing director of Apache North Sea. “A little more than a year after first production, Bacchus has produced 3 million barrels of oil and has already paid out.”

Key Stats (on next page)…

Revenue increased 7.53% from $4.08 billion in the previous quarter. EPS decreased 0.5% from $2.02 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 $2.31 to a profit $2.1. For the current year, the average estimate has moved down from a profit of $9.11 to a profit of $8.21 over the last ninety days.

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