Apache Earnings: Here’s Why the Stock is Up Now

Apache Corp. (NYSE:APA) delivered a profit and missed Wall Street’s expectations, AND 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 0.95%.

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Apache Corp. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 32.67% to $2.02 in the quarter versus EPS of $3.00 in the year-earlier quarter.

Revenue: Decreased 10.14% to $4.08 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Apache Corp. reported adjusted EPS income of $2.02 per share. By that measure, the company missed the mean analyst estimate of $2.21. It missed the average revenue estimate of $4.31 billion.

Quoting Management: G. Steven Farris, Apache’s chairman and chief executive officer, said, “We are showing strong results from the strategic shift that we outlined in 2012, with production from onshore North American liquids plays of 165,000 barrels per day in the first quarter. We expect our onshore drilling programs will continue to contribute significantly to meeting our production targets.”

Key Stats (on next page)…

Revenue decreased 7.17% from $4.39 billion in the previous quarter. EPS decreased 11.01% from $2.27 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 $2.27 to a profit $2.2. For the current year, the average estimate has moved down from a profit of $9.57 to a profit of $9.11 over the last ninety days.

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

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