ConocoPhillips Fourth Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component ConocoPhillips (NYSE:COP) will unveil its latest earnings tomorrow, Wednesday, January 30, 2013. An international energy company, ConocoPhillips operates under six segments: exploration and production, midstream, refining and marketing, LUKOIL investment, chemicals, and emerging businesses.

ConocoPhillips Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of $1.41 per share, a decline of 30.2% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved up from $1.40. Between one and three months ago, the average estimate moved up. It has been unchanged at $1.41 during the last month. For the year, analysts are projecting net income of $5.93 per share, a decline of 32.3% from last year.

Past Earnings Performance: The company is looking to make a streak of three quarters of beating estimates. Last quarter, it beat expectations by reporting profit of $1.44 per share, and the previous quarter, it had net income of $1.22.

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Wall St. Revenue Expectations: On average, analysts predict $13.31 billion in revenue this quarter, a decline of 78.7% from the year-ago quarter. Analysts are forecasting total revenue of $100.07 billion for the year, a decline of 60.2% from last year’s revenue of $251.23 billion.

A Look Back: In the third quarter, profit fell 31.3% to $1.8 billion ($1.46 a share) from $2.62 billion ($1.91 a share) the year earlier, but exceeded analyst expectations. Revenue fell 76% to $15.09 billion from $62.81 billion.

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

cop

Analyst Ratings: With seven analysts rating the stock as a buy, four rating it as a sell and five rating it as a hold, there are indications of a bullish outlook.

Key Stats:

An income boost this time around would be welcome news after profit drops in the past three quarters. Net income fell 3% in the first quarter, by 33.4% in the second quarter and again in the third quarter.

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 76.9% 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 0.91 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, a ratio less than one could indicate a company may have difficulty meeting current obligations.

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