ConocoPhillips Earnings Cheat Sheet: Two Straight Quarters of Profit Drops, but Beat Estimates

S&P 500 (NYSE:SPY) component ConocoPhillips (NYSE:COP) reported its results for the third quarter. An international energy company, ConocoPhillips operates under six segments: exploration and production, midstream, refining and marketing, LUKOIL investment, chemicals, and emerging businesses.

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ConocoPhillips Earnings Cheat Sheet for the Third Quarter

Results: Net income for the oil and gas company fell to $2.62 billion ($1.91 per share) vs. $3.06 billion ($2.05 per share) a year earlier. This is a decline of 14.4% from the year earlier quarter.

Actual vs. Wall St. Expectations: COP reported adjusted net income of $2.52 per share. By that measure, the company beat the mean estimate of $2.16 per share.

Quoting Management: “This quarter’s results benefitted from improved market conditions,” said Jim Mulva, chairman and chief executive officer. “While commodity prices were higher, E&P production was lower, mainly due to suspended operations in Bohai Bay and Libya. Our downstream business ran well, allowing us to capture stronger refining margins.”

Key Stats:

The company has now seen net income fall in each of the last two quarters. In the second quarter, net income fell 18.3% from the year earlier quarter.

The company has now beaten estimates the last two quarters. In the second quarter, it topped expectations with net income of $2.41 versus a mean estimate of net income of $2.20 per share.

Looking Forward: Expectations for the company’s next quarter results are lower than they have been. Over the past sixty days, the average estimate for fourth quarter has fallen from $2.08 per share to $1.89. For the fiscal year, the average estimate has moved up from $8.12 a share to $8.24 over the last ninety days.

Competitors to Watch: Chevron Corporation (NYSE:CVX), Exxon Mobil Corporation (NYSE:XOM), BP plc (NYSE:BP), Marathon Oil Corporation (NYSE:MRO), Hess Corp. (NYSE:HES), China Petroleum & Chemical Corp. (NYSE:SNP), TOTAL S.A. (NYSE:TOT), Repsol YPF, S.A. (REPYY), and Statoil ASA (NYSE:STO).

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(Source: Xignite Financials)