ConocoPhillips Second Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component ConocoPhillips (NYSE:COP) will unveil its latest earnings on Wednesday, July 27, 2011. An international energy company, ConocoPhillips operates under six segments: Exploration and Production, Midstream, Refining and Marketing, LUKOIL Investment, Chemicals and Emerging Businesses. Will ConocoPhillips New Strategy Affect the Oil and Gas Industry?>>

ConocoPhillips Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of $2.21 per share, a rise of 32.3% 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 $2.12. Between one and three months ago, the average estimate moved up, but has dropped from $2.23 during the last month. For the year, analysts are projecting net income of $8.12 per share, a rise of 36.2% from last year.

Past Earnings Performance: The company missed estimates last quarter after beating forecasts in the prior two. In the first quarter, the company reported profit of $1.82 per share versus a mean estimate of net income of $1.97 per share. In fourth quarter of the last fiscal year, the company beat estimates by one cent.

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Wall St. Revenue Expectations: On average, analysts predict $60.29 billion in revenue this quarter, a rise of 32% from the year ago quarter. Analysts are forecasting total revenue of $226.09 billion for the year, a rise of 19.3% from last year’s revenue of $189.44 billion.

Analyst Ratings: Analysts are bullish on ConocoPhillips as nine analysts rate it as a buy, three rate it as a sell and eight rate it as a hold.

Key Stats:

The company has enjoyed double-digit year-over-year percentage revenue growth for the past four quarters. Over that span, the company has averaged growth of 24.3%, with the biggest boost coming in the second quarter of the last fiscal year when revenue rose 28.9% from the year earlier quarter.

The company has now seen net income rise in three straight quarters. In the first quarter, net income rose 44.3% while it rose 67.7% in the fourth quarter of the last fiscal year and more than twofold in the third quarter of the last fiscal year.

The company’s gross margin shrank by 3.2 percentage points in the in the first quarter. Revenue rose 25.9% while cost of sales rose 31.2% to $45.18 billion from a year earlier.

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) and Statoil ASA (NYSE:STO).

Stock Price Performance: During May 24, 2011 to July 21, 2011, the stock price had risen $4.53 (6.4%) from $71.28 to $75.81. The stock price saw one of its best stretches over the last year between December 17, 2010 and January 3, 2011 when shares rose for 11-straight days, rising 4.9% (+$3.10) over that span. It saw one of its worst periods between November 10, 2010 and November 17, 2010 when shares fell for six-straight days, falling 3.8% (-$2.34) over that span. Shares are up $9.51 (+14.3%) year to date.

(Source: Xignite Financials)

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