ConocoPhillips Third Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component ConocoPhillips (NYSE:COP) will unveil its latest earnings on Thursday, October 25, 2012. 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 net income of $1.17 per share, a decline of 53.6% 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 $1.16. Between one and three months ago, the average estimate moved down. It has risen from $1.12 during the last month. Analysts are projecting profit to rise by 35.6% versus last year to $5.64.

Past Earnings Performance: The company topped estimates last quarter after missing forecasts the quarter prior. In the second quarter, it reported profit of $1.22 per share against a mean estimate of net income of $1.17 per share. In the first quarter, it missed forecasts by 6 cents.

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Wall St. Revenue Expectations: Analysts are projecting a decline of 82.3% in revenue from the year-earlier quarter to $11.11 billion.

A Look Back: In the second quarter, profit fell 33.4% to $2.27 billion ($1.80 a share) from $3.4 billion ($2.41 a share) the year earlier, but exceeded analyst expectations. Revenue fell 76.9% to $15.17 billion from $65.72 billion.

Stock Price Performance: Between July 26, 2012 and October 19, 2012, the stock price rose $3.05 (5.6%), from $54.40 to $57.45. The stock price saw one of its best stretches over the last year between February 16, 2012 and February 28, 2012, when shares rose for eight straight days, increasing 6.2% (+$4.49) over that span. It saw one of its worst periods between November 15, 2011 and November 25, 2011 when shares fell for eight straight days, dropping 8.1% (-$5.85) over that span.

Key Stats:

On the top line, the company is looking to get back on the right track after last quarter’s drop snapped a string of revenue increases. Revenue rose 33.1% in the third quarter of the last fiscal year, 19.2% in the fourth quarter of the last fiscal year and 1.1%in the first quarter before dropping in the second quarter.

The company is trying to use this earnings announcement to rebound from income declines in the past two quarters. Net income dropped 3% in the first quarter and then again in the second quarter.

Analyst Ratings: With six 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.

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

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