Marathon Oil Corp Earnings: Profit Slides Again

S&P 500 (NYSE:SPY) component Marathon Oil Corporation (NYSE:MRO) reported its results for the first quarter. Marathon Oil is an oil and natural gas exploration and production company with operations in North America, Africa, and Europe.

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Marathon Oil Earnings Cheat Sheet for the First Quarter

Results: Net income for Marathon Oil Corporation fell to $417 million (59 cents per share) vs. $996 million ($1.39 per share) a year earlier. This is a decline of 58.1% from the year-earlier quarter.

Revenue: Rose 6.1% to $4.04 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Marathon Oil Corporation reported adjusted net income of 67 cents per share. By that measure, the company fell short of mean estimate of 87 cents per share. It beat the average revenue estimate of $3.36 billion.

Quoting Management: “Marathon Oil had a solid quarter operationally with the Exploration and Production (E&P) segment delivering production available for sale at an average 371,000 barrels of oil equivalent per day (boed) – excluding Libya – which was above our projections,” said Clarence P. Cazalot Jr., Marathon Oil’s chairman, president and CEO. “Our U.S. Lower 48 net sales volumes grew 12 percent over the fourth quarter of 2011, led by increases in the Texas Eagle Ford, North Dakota Bakken and Oklahoma Anadarko Woodford resource plays. Record production performance in Norway and the resumption of sales in Libya generated a two percent increase in international E&P sales volumes over fourth quarter of 2011, more than offsetting the impacts of a planned turnaround in Equatorial Guinea, and unscheduled downtime in the U.K. at Foinaven and no liftings at Brae.

Key Stats:

The company has now missed analyst estimates for the last four quarters. It fell short by 7 cents in the fourth quarter of the last fiscal year, by 26 cents in the third quarter of the last fiscal year, and by 3 cents in the second quarter of the last fiscal year.

The company’s net income has now fallen for three straight quarters. In the fourth quarter of the last fiscal year, net income fell 22.2% from the year earlier, while the figure fell 41.8% in the third quarter of the last fiscal year.

Looking Forward: Over the last 30 days, analysts have not been optimistic about the company’s next-quarter performance. The average estimate for the second quarter is now 90 cents per share, down from 92 cents. Over the past three months, the average estimate for the fiscal year has climbed from $3.69 per to share to $3.78.

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

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